Market data and asset movements shows that the Dogecoin price is enduring its toughest quarter in years, with the memecoin struggling to defend the $0.17 support zone as persistent outflows and bearish sentiment pressure the market. Related Reading: XRP’s Next ‘Face-Melting’ Rally Could Hit Within 6 Weeks—Analyst Dogecoin (DOGE) fell over 3% this week, testing the lower boundary of its ascending channel near $0.17, a critical level that has historically triggered rebound rallies. DOGE's price trends to the downside on the daily chart. Source: DOGEUSD on Tradingview A Dogecoin Price Technical Breakdown According to CoinDesk data, the Dogecoin price decline accelerated after heavy selling during European trading hours, breaking below $0.1720 on strong volume before stabilizing. Momentum indicators remain weak, with the daily RSI hovering around 41, suggesting limited buying strength. The 20-day and 50-day exponential moving averages continue to act as resistance near $0.182 and $0.199, respectively, keeping the short-term trend bearish. Despite this, on-chain data reveals that some mid-tier whales are quietly accumulating. Wallets holding between 100 million and 1 billion DOGE have increased their holdings by nearly 5 billion coins since late October, even as larger holders liquidated over $700 million worth of DOGE. This divergence among whale cohorts hints at potential volatility ahead, and possibly, an eventual recovery if market structure holds. Analysts Point to Hidden Bullish Divergence and ETF Hopes Technical analysts suggest that Dogecoin’s current weakness may be masking the setup for a powerful rebound. The weekly chart shows a hidden bullish divergence, where price makes higher lows while RSI forms lower lows, often signaling the end of a correction phase. If the Dogecoin price maintains support above $0.17, traders expect a potential 33% rally toward $0.22, aligning with the 0.5 Fibonacci retracement zone. Market watchers also note that a successful breakout above $0.188 could trigger short squeezes, given that short positions currently outweigh longs by a 5:1 ratio. Related Reading: Ethereum Ready To Explode To $12,000 By January, Says Tom Lee Adding fuel to optimism is speculation surrounding a possible Bitwise Spot Dogecoin ETF, which could arrive before year-end if auto-approval rules apply. Analysts believe such an event could inject fresh liquidity and institutional exposure, potentially ending the memecoin’s months-long consolidation. Cover image from ChatGPT, DOGEUSD chart from Tradingview

Dogecoin is experiencing its toughest quarter yet, struggling to maintain the $0.17 support level amid bearish sentiment and significant selling pressure, with a decline of over 3% this week. Despite this, analysts suggest that a potential rally could be on the horizon, as some mid-tier investors are accumulating nearly 5 billion coins, indicating possible volatility ahead.

Dogecoin Price Faces Its Hardest Quarter Yet, But Analysts Say a Massive Rally Could Be Next

Was this article worth reading? Share it

Ready to build your own newsroom?