Dogecoin Finds Key Support After 6% Pullback
Dogecoin (DOGE) appears to be regaining traction after a sharp intraday decline. The popular memecoin dropped nearly 5.7% within 24 hours, touching a low of $0.158 before stabilizing. The pullback was largely driven by profit-taking and broader risk-off sentiment in the cryptocurrency market, triggered by geopolitical and macroeconomic uncertainties.
However, buying interest surged at $0.158, creating a short-term support zone that has now become a focal point for traders. By the end of the trading session, DOGE had climbed back to $0.161, marking a 1.47% gain from its intraday low.
Market Context and Investor Sentiment
The crypto market remains on edge due to ongoing global tensions and uncertainty around monetary policies. While some geopolitical relief has been seen via ceasefire efforts in conflict zones, investors remain cautious, especially toward high-beta assets like DOGE.
Still, DOGE’s rebound was accompanied by a renewed spike in trading volume and social interest, often seen before short-term recoveries. Some traders interpreted the dip as a buying opportunity, suggesting bullish sentiment may be building near current support levels.
Volume and Price Action Indicators
DOGE traded in a wide range between $0.167 and $0.158, reflecting high volatility. The downtrend persisted until around 13:00 UTC, when price action began to consolidate. A heavy sell volume of 425 million DOGE was recorded during this period.
Shortly after, buyers stepped in with 229 million DOGE traded near the support zone, pushing prices upward. A notable breakout occurred as DOGE crossed $0.161, supported by 4.7 million DOGE in volume between 01:39 and 01:42 UTC.
Technical Summary
- DOGE dropped from $0.167 to $0.158, marking a 5.7% decline
- Strong support was observed at $0.158, leading to recovery
- Volume-backed breakout above $0.161 signals a potential trend reversal
- Higher highs and higher lows formed in the final session
- 229M DOGE bought at support and 4.7M DOGE volume during breakout confirmed buyer strength
Outlook
While analysts remain divided on the strength and sustainability of the recovery, the presence of volume-backed support at $0.158–$0.161 suggests the potential for near-term bullish momentum. If this zone holds, DOGE could attempt another test of resistance near $0.167, depending on broader market cues and sentiment.
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.