DOGE/USDT recovers from steep sell-off as traders eye key support and potential short-term rally
After suffering a steep decline earlier this month, Dogecoin (DOGE) is showing signs of life again. The meme-inspired cryptocurrency rebounded strongly from its recent low, suggesting a possible short-term recovery after what traders described as a “panic-driven flush-out.”
Data shows that DOGE/USDT plunged over 55%, dropping briefly below the critical $0.0015 support zone before buyers stepped in aggressively. The token has since bounced back to around $0.00193, reclaiming part of its lost ground. This rebound comes amid broader volatility across the crypto market following a $20 billion liquidation event that affected leveraged positions in major assets like Bitcoin and Ethereum.
“Dogecoin’s structure still holds technically as long as it remains above the green support zone,” said BITX market analyst. “That area between $0.0018 and $0.0020 has historically acted as a strong accumulation range where buyers tend to re-enter.”
On the daily chart, Dogecoin recently retested its long-term demand zone, highlighted in green, where previous rallies originated. The sharp wick below support suggests a liquidity sweep that may have triggered stop losses before fresh buyers entered. Analysts note that the recovery volume has increased, a positive signal indicating that the correction may be stabilizing.
“This kind of deep retracement followed by high-volume buying often precedes a technical rebound,” said BITX crypto strategist. “If DOGE can hold above $0.0020, the next resistance lies near $0.0028, where sellers previously dominated in late September.”
Broader market sentiment has shown modest improvement after a week of turbulence. Bitcoin’s recovery above $110,000 and Ethereum’s stabilization near $3,900 have helped lift altcoins, including Dogecoin.
Still, experts caution that any sustained rally will depend on Bitcoin’s direction and overall risk appetite.
For now, Dogecoin’s rebound from multi-month lows signals renewed buyer confidence, though traders remain cautious amid macroeconomic uncertainty.
If bullish momentum continues, DOGE could retest higher resistance levels, potentially confirming a medium-term trend reversal.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.