Dogecoin Tumbles—But Traders See a Meme-Fueled Rebound Brewing

Dogecoin’s price takes a hit—classic crypto volatility or a buying opportunity? The meme coin’s latest dip has speculators circling like sharks smelling blood in the water.

Buckle up for the pump-and-dump rollercoaster. When DOGE drops, the ’buy the dip’ brigade emerges faster than a Wall Street banker charging $500 for a PowerPoint slide.

Will this be another dead-cat bounce or the start of a parabolic rally? Only Elon’s next tweet knows for sure.

Dogecoin Drops Sharply but Finds Support

DOGE’s price plunged to $0.2086, or approximately IDR 3,419, marking a 7.82% decrease over a single day. The coin had reached a high of IDR 3,716 earlier in the day and dropped to a low of IDR 3,338 before settling at its current level.

Although this downward move worried some traders, others viewed it as a healthy correction and pointed out that the price has found support NEAR $0.2172. This level appears to be holding, suggesting that the asset may be entering a recovery phase.

Analysts Highlight a Bullish Chart Pattern

Technical analysts are currently focused on a large pattern forming on the long-term Dogecoin chart known as the “Cup and Handle.” This pattern, which has taken shape over several years, is considered a reliable indicator of potential breakouts in traditional and crypto markets.

According to TradingView analyst Aram Salimi, Dogecoin’s chart shows the classic signs of this formation. The pattern began in May 2021 when Doge briefly peaked above $0.70. Over time, the price gradually declined and bottomed out around $0.05 in late 2022 and early 2023, forming the rounded “cup” shape.

DOGE has since rebounded, climbing back into the $0.22 to $0.25 range in early 2025. This MOVE completes the right side of the cup. The recent mild pullback near resistance creates the “handle,” which often precedes a breakout to the upside.

Salimi believes that once dogecoin clears resistance around the $0.25 mark, it could target the $0.45 to $0.50 range in the short term. Over a longer time horizon, he projects the price could reach as high as $2.50. If this happens, DOGE would see a gain of over 1,000% from its current levels.

Technical Signals Suggest a Potential Breakout

Recent technical indicators offer additional support for a bullish outlook. On the hourly chart, DOGE has moved above the 100-hour Simple Moving Average (SMA), a sign that short-term momentum is improving.

DOGE is now hovering near $0.222 and is showing signs of strength above a key trendline at $0.2230. Immediate resistance levels sit at $0.230 and $0.2350, with a breakout zone identified around $0.2420. If the price moves beyond this point with strong volume, it could potentially reach $0.2550 or even $0.2640.

However, if Dogecoin fails to hold the support level at $0.2120, the risk of further downside remains. A drop below that point could lead to a correction toward $0.18 or possibly $0.15.

The Relative Strength Index (RSI), a momentum indicator, currently stands at 57—indicating a neutral sentiment. Meanwhile, the Moving Average Convergence Divergence (MACD) has slipped into negative territory, suggesting a cautious outlook in the short term.

Derivatives Market Shows Signs of Strength

The derivatives market is also showing signs that traders are preparing for a significant move. DOGE’s trading volume in derivatives ROSE by over 4%, reaching $3.34 billion. Open interest—representing the number of active positions—also grew by 2.67% to $2.72 billion.

Options trading data painted a mixed picture. While overall options volume saw a slight decline, open interest in Dogecoin options increased by more than 21%, surpassing $620,000. This signals that traders are holding on to their existing positions in anticipation of a possible breakout.

Institutional Interest Adds Fuel to the Bullish Case

Interest from larger players in the financial world may also play a role in Dogecoin’s future price movement. Grayscale, a major digital asset manager, has submitted an application to offer a Dogecoin-based exchange-traded fund (ETF) in the United States.

While the application is still under review, analysts believe that regulatory leadership under Paul Atkins at the Securities and Exchange Commission (SEC) may be more open to approving such financial products. If approved, it could increase exposure to DOGE among institutional investors, further boosting demand and trading volume.

What Comes Next for Dogecoin?

Despite its recent drop, the outlook for Dogecoin remains highly debated among traders and analysts. On one hand, short-term technical indicators are mixed, with some suggesting caution. On the other hand, the long-term chart presents a compelling bullish scenario.

The Cup and Handle pattern has historically been one of the more reliable formations in chart analysis. If DOGE breaks above $0.25 and maintains buying momentum, it could trigger a wave of new interest from both retail and institutional investors.

That said, traders should keep an eye on support and resistance levels and watch for confirmation from volume and other technical indicators before making decisions.

Final Thoughts

Dogecoin’s recent volatility is nothing new for experienced crypto traders, but what sets the current moment apart is the potential emergence of a well-known technical pattern. If the Cup and Handle formation holds true, DOGE could be preparing for one of its biggest moves yet.

As always, crypto markets remain risky and unpredictable. Investors are advised to do their own research and manage risk accordingly.

For those tracking DOGE, the next few weeks could be crucial. Whether the coin continues to fall or starts a new upward trend depends largely on how it performs around its key resistance levels—and how much buying pressure follows.