Dogecoin Stumbles—But the Meme Coin’s Next Pump Might Be Closer Than You Think

Dogecoin’s latest dip has traders sweating—yet history suggests this ’joke’ asset bounces harder after every correction. Here’s why the market’s favorite underdog isn’t down for long.

Short-term pain, long-term meme: While DOGE’s 20% slide this week triggered panic sells, on-chain data shows whales accumulating at these levels. Same pattern as the 2021 run-up.

The casino stays open: Retail traders keep piling into perpetual swaps despite the volatility—because nothing fuels a crypto rally like leverage and short squeezes. Just ask the hedge funds still nursing GameStop trauma.

Bottom line: In a market where fundamentals are just another meme, Dogecoin’s cult following and Elon’s Twitter feed remain the only technical analysis that matters. Place your bets accordingly.

Dogecoin retraces for a week, but re-establishes lower timeframe bullish structure

Source: DOGE/USDT on TradingView

The 1-day chart showed a bullish structure, but also a minor retracement for DOGE. The OBV made it clear that although it was on an uptrend, the recent rejection at $0.26 was accompanied by high selling pressure.

This meant that the OBV was once again below its late February lows. A breakout beyond this level earlier in May was seen as a strongly bullish signal, but subsequent profit-taking activity has slightly eroded the shine of this idea.

The RSI remained above 50 to indicate that momentum was bullish. The Fibonacci levels plotted using the lower timeframe rally from $0.164 to $0.26 showed that dogecoin found support at the 50% retracement at $0.212.

Source: DOGE/USDT on TradingView

On the 4-hour chart, the defense of this retracement level was accompanied by a bullish market structure break. The MOVE beyond the recent lower high at $0.229, marked in green, flipped the structure in favor of the buyers.

However, the OBV was yet to push beyond the highs of 16 May. Hence, the bullish structure shift was accompanied by weak buying volume. This could be followed by another dip to $0.212 or lower.

Source: Coinglass

Finally, the longs vs shorts data from Coinglass revealed that the taker buy/sell volume was nearly equal. Therefore, by volume, the market sentiment appeared balanced and unbiased in the short term.

The data of accounts also showed that long traders composed 75% of the total accounts – An overwhelming majority. This has been the case for the past month.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion