Dogecoin’s Rally Stalls – Brace for a Drop to $0.213 as Bulls Lose Steam

Dogecoin’s meme-fueled surge hits a wall—traders now eyeing a retest of key support at $0.213 as momentum evaporates. The ’people’s crypto’ can’t outrun gravity forever.

Analysts warn the dip could deepen unless Bitcoin whales step in to prop up the market—because nothing says ’decentralized’ like relying on a handful of mega-bagholders.

Speculation Rises But DOGE Faces Crucial Test

During the recent correction that sent shockwaves across the crypto market, meme coins like dogecoin were among the most heavily affected assets. As Bitcoin and major altcoins faced steep retracements, DOGE experienced an aggressive pullback, shedding over 18% since May 10th and erasing a significant portion of its earlier gains. This correction disrupted the bullish structure that had formed after DOGE surged over 100% from early April, following a breakout above the $0.13 mark.

Despite the drop, speculation continues to mount around Dogecoin’s potential to lead if the market regains momentum. Historically, DOGE has acted as a high-beta asset, often outperforming in euphoric phases of the cycle. With the broader market attempting to stabilize, some analysts view DOGE as a likely beneficiary if sentiment shifts bullish once again.

Still, risks remain. Price is now hovering just above key support levels, and a failure to hold this zone could trigger a deeper retracement. Martinez shared a technical view suggesting that if current levels fail to hold, Dogecoin may want to revisit the $0.213 level — a critical area that previously acted as a launchpad during the April breakout.

The coming sessions are likely to be decisive. The meme coin narrative could regain strength if bulls reclaim control and push DOGE back toward the $0.26 resistance. However, if bearish momentum builds and DOGE breaks lower, it WOULD signal a continuation of the current downtrend. For now, all eyes remain on this pivotal support zone as Dogecoin navigates a high-stakes moment within the broader market’s uncertain conditions.

Technical Details: Dogecoin Facing Crucial Demand

Dogecoin (DOGE) is showing signs of weakness after failing to hold above key resistance NEAR $0.26 earlier this month. The daily chart indicates that DOGE is currently trading at $0.221, consolidating just above the 200-day EMA ($0.219) and below the 200-day SMA ($0.269). This range has acted as a battleground between bulls and bears, with the recent candles forming tight-bodied structures, signaling indecision.

Volume has declined notably since the early May breakout, suggesting a loss of momentum and trader interest. If DOGE loses the $0.219–$0.220 support zone, the next logical support level sits near $0.213, aligning with analyst concerns of a potential retest of that level. A breakdown below this area could trigger further downside pressure toward the $0.19 zone.

On the upside, reclaiming the 200-day SMA at $0.269 would be a significant bullish signal, as it would place DOGE back above long-term resistance. However, the current trend favors a cautious stance, especially amid broader market uncertainty and weakened sentiment across altcoins. Overall, the chart reflects a pause in bullish momentum and rising risk of a deeper retrace unless DOGE regains strength above key moving averages. The next few days could determine whether consolidation holds or turns into a full correction.

Featured image from Dall-E, chart from TradingView