Dogecoin Hits Wall at $0.25 as Bears Claw Back Control

Dogecoin’s latest rally smacks into a brick wall of resistance between $0.24-$0.25—proof that even memecoins can’t defy gravity forever. The rejection paints a clear picture: sellers are stepping in where buyers fear to tread.

Supply zones turn slaughterhouses. What was once a springboard for Doge’s 2021 mania now acts as a ceiling, with traders flipping their positions faster than a Wall Street analyst reversing their Bitcoin price target. The pattern echoes across crypto: unsustainable pumps meet brutal reality checks.

Will DOGE bulls find another catalyst, or is this the start of another ’buy the rumor, sell the news’ cycle? Either way, the market’s message is clear—when liquidity dries up, even the shiniest joke asset gets treated like a bad punchline.

Rejection At $0.24 To $0.25 Zone Causes Bearish Engulfing Pattern

Dogecoin recently faced a quick rejection at the $0.24009 to $0.25000 supply zone, which has caused a bearish outlook to start creeping in. This rejection is highlighted by an area that the LuxAlgo’s Supply and Demand indicator identified as a significant liquidity cluster. 

Notably, the ensuing price action on the daily candlestick timeframe chart after the rejection  has led to the creation of a bearish engulfing pattern. Price action in this region formed a series of bearish candles, which is a technical formation that shows sellers are regaining control after the bullish push. Furthermore, this is the second rejection from this level, following a similar failed breakout attempt in March. The double rejection reinforces the strength of the supply zone and a lack of buyer follow-through above $0.24.

Aside from the bearish engulfing pattern, the rejection is also followed by a clear increase in trading volume, which adds to the bearish outlook. It also supports the notion that Dogecoin may be entering a corrective phase in the short term.

Support Levels To Watch: $0.19 And $0.14

Now that a resistance level has been identified around $0.25, the Dogecoin path has a few paths to follow. The overall outlook is starting to tilt bearish, at least in the short term. With this in mind, the analyst highlighted two key support levels to keep an eye on. 

The first support level is $0.19361. This price level served as resistance in April but flipped to support during the breakout earlier this month. A breakdown below $0.19361 WOULD represent a significant technical failure and open the door for a deeper correction.

Below that, the next central zone of support interest is $0.14915. This is a high-confluence demand zone where Dogecoin rebounded twice in March. This level also aligns with LuxAlgo’s supply and demand, which shows a high liquidity cluster around $0.15. If Dogecoin does reach here again, there is a high possibility of institutional interest and a bounce.

At the time of writing, Dogecoin is trading at $0.2171, down by 3.7% in the past 24 hours.

Featured image from Unsplash, chart from TradingView