Dogecoin (DOGE) Extends Losses - Is This the Final Shakeout Before Big Rally?

Dogecoin continues its downward spiral as investors question whether this is the last capitulation before a major upward move.

Market Analysis: Technical indicators show DOGE testing critical support levels while trading volume spikes suggest heightened investor anxiety.

Historical Context: Previous Dogecoin corrections of similar magnitude have often preceded significant rallies, creating both opportunity and risk for traders.

Market Sentiment: Despite the current bearish momentum, institutional interest in meme coins appears to be growing—though whether that's genuine conviction or just another Wall Street experiment remains unclear.

As traditional finance scrambles to understand internet culture, crypto veterans watch the charts, knowing that in this market, the line between genius and madness is thinner than a trader's profit margin.

Dogecoin Price Dips Further

Dogecoin price started a fresh decline after there was a close below $0.2620, like Bitcoin and Ethereum. DOGE declined below the $0.2550 and $0.250 support levels.

The price even traded below $0.240. A low was formed at $0.2303, and the price is now consolidating losses below the 23.6% Fib retracement level of the recent decline from the $0.2888 swing high to the $0.2303 low. Besides, there is a bearish trend line forming with resistance at $0.250 on the hourly chart of the DOGE/USD pair.

Dogecoin price is now trading below the $0.2450 level and the 100-hourly simple moving average. If there is a recovery wave, immediate resistance on the upside is NEAR the $0.2440 level.

The first major resistance for the bulls could be near the $0.250 level and the trend line. The next major resistance is near the $0.260 level. It is close to the 50% Fib retracement level of the recent decline from the $0.2888 swing high to the $0.2303 low. A close above the $0.260 resistance might send the price toward the $0.280 resistance. Any more gains might send the price toward the $0.2880 level. The next major stop for the bulls might be $0.30.

Another Drop In DOGE?

If DOGE’s price fails to climb above the $0.250 level, it could continue to MOVE down. Initial support on the downside is near the $0.2350 level. The next major support is near the $0.230 level.

The main support sits at $0.2250. If there is a downside break below the $0.2250 support, the price could decline further. In the stated case, the price might slide toward the $0.2120 level or even $0.2050 in the near term.

Technical Indicators

Hourly MACD – The MACD for DOGE/USD is now losing momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is now below the 50 level.

Major Support Levels – $0.2350 and $0.2300.

Major Resistance Levels – $0.2500 and $0.2600.