Dogecoin Plummets 16%—But a $0.25 Rebound Might Be Brewing

Dogecoin’s latest nosedive has traders sweating—down 16% in just seven days. Yet whispers of a comeback are getting louder. Here’s why.

Meme coin magic or market manipulation? Either way, DOGE’s chart hints at a potential rebound toward $0.25. Technicals show oversold conditions, while retail FOMO lurks—classic crypto theater.

Of course, this could just be another ’buy the dip’ trap from the usual suspects. Remember when ’fundamentals’ mattered? Yeah, neither do we.

Low liquidity puts DOGE behind

CoinMarketCap’s 90-day performance index shows that among the leading memecoins by market capitalization, Dogecoin has attracted the least liquidity, despite holding a $28.6 billion market cap.

As of writing, DOGE has gained only 0.04% in the past ninety days. In contrast, FARTCOIN, with a $1.11 billion market cap, has surged by 368% over the same period.

Source: CoinMarketCap

Despite this underperformance, market analysis indicates that DOGE could be gearing up for a rally.

On the daily timeframe, dogecoin has traded into a critical level—an ascending support line.

This zone could act as a catalyst for a major price move, with a target set at $0.25, representing a 33% rally from the current price level.

Source: TradingView

However, if DOGE fails to build sufficient momentum, the price could reverse and retest the origin of the ascending pattern NEAR $0.14.

Retail traders are taking sides

Retail traders have begun taking positions in the derivatives market, with a noticeable uptick in long bets.

At press time, the Long/Short Ratio stood at 1.01, signaling a tilt toward bullish sentiment. A ratio above 1 implies higher buying volume than selling volume, which strengthens the case for a rally.

Source: CoinGlass

A close examination of Open Interest (OI) in both options and futures contracts shows a steady rise. OI represents the total value of unsettled derivative contracts within a specific period.

At the time of writing, OI in the Futures market has reached $2.06 billion, while the options market stands at $347,000. Sustained growth in OI alongside increasing buy volume suggests that DOGE may continue climbing.

DOGE could see more inflows

In the past 24 hours, DOGE has seen notable inflows, with $4.77 million worth of tokens moved into private wallets by spot traders.

Source: CoinGlass

When a large amount of tokens moves off exchanges and into private wallets, it typically indicates accumulation in anticipation of a long-term rally.

This also implies that the tokens are less likely to return to the market for sale. If such inflows continue, DOGE could trend toward the $0.25 target outlined on the chart.