Dogecoin Stalls at $0.22 After Rally—Traders Split Between ’To the Moon’ and ’Impending Correction’

Dogecoin’s meme-fueled rally hits a wall at $0.22, leaving traders to wonder if this is the calm before another spike or the prelude to a classic crypto reckoning.

Technical analysts point to weakening momentum indicators, while the ’HODL’ crowd cites Elon Musk’s latest cryptic tweet as proof of imminent liftoff. Meanwhile, Wall Street strategists quietly adjust their short positions behind Bloomberg terminals.

One thing’s certain: whether it’s a 10x surge or a 50% collapse, somebody’s getting rich—and it probably isn’t you.

Dogecoin Retail Activity and Sentiment Indicators

One of CryptoQuant’s contributors, Burak Kesmeci, recently shared new insights into DOGE’s futures market activity. In a post titled “Too Many Retail Traders? Doge Futures Show Repeated Peak Patterns”, Kesmeci pointed to the potential influence of speculative trading behavior.

His analysis highlights that previous peaks in Dogecoin’s price have often coincided with a sharp increase in retail participation in futures markets, raising questions about the sustainability of such rallies.

Kesmeci’s analysis centers around a visual metric that tracks trading activity from retail investors within DOGE futures markets. In this chart, red bubbles mark moments when retail trading spikes significantly.

These periods, according to the analyst, have historically aligned with local price tops, suggesting that elevated speculative behavior often precedes short-term corrections. On the other hand, green and pink bubbles, representing periods of reduced retail activity, have typically aligned with more stable or neutral price phases.

The underlying interpretation is that when DOGE futures markets become saturated with retail participants, the likelihood of momentum exhaustion increases. For traders, these retail spikes may serve as potential warning signals of short-term reversals.

As Kesmeci notes, this data can be used in conjunction with other technical and on-chain metrics to build a more comprehensive view of market sentiment, especially in volatile assets like Dogecoin. The analysis supports a more cautious approach where retail enthusiasm dominates trading volumes.

Technical Forecast Suggests Possible Rally Continuation

While futures data indicates caution around potential retail-driven tops, other technical perspectives suggest the possibility of further upside. crypto analyst Javon Marks recently shared an outlook indicating that DOGE may be positioned for a continuation toward a new all-time high.

According to Marks, the asset has confirmed a major bullish signal on its chart, suggesting that another leg of upward momentum may already be in play. He projects that the next major target lies nearly 200% above current price levels.

$DOGE RECOVERING HEAVILY AND HAS CONFIRMED A MAJOR CONTINUATION SIGNAL!

Next leg towards All Time Highs can be in-effect and with those levels nearly +200% away, it could be HUGE! https://t.co/5H1HkZG5Hn pic.twitter.com/whi0lxqDM2

— JAVONMARKS (@JavonTM1) May 13, 2025

Featured image created with DALL-E, Chart from TradingView