Dogecoin (DOGE) Reaches Deciding Point Following 7% Price Decline

Dogecoin (DOGE) Reaches Deciding Point Following 7% Price Decline

In a significant turn of events, Dogecoin (DOGE) is currently testing critical support around $0.24 to $0.26 following a recent pullback after surging to nearly $0.29. This support zone includes the 50-period simple moving average (SMA) on the 4-hour chart, which has held during the rally.

The recent 7% correction in Dogecoin comes after a notable rally fueled by positive catalysts such as speculation around a spot ETF, large institutional buys (notably Bit Origin's $500 million purchase), and regulatory clarity from the GENIUS Act that boosted market confidence. However, the broader crypto market is experiencing nervousness tied to upcoming Fed policy decisions, particularly fears of no rate cuts in July, causing caution and selling pressure across many tokens, including DOGE.

Despite these challenges, strong historical accumulation zones between $0.056 and $0.27 provide a robust foundation and reduce downside risk. A decisive close above the $0.40 resistance could signal a major shift in market sentiment and enable a sustained run higher, potentially targeting the $0.40 to $0.45 zone as a critical juncture for medium to longer-term upside.

Meanwhile, current support holds near $0.24–$0.26 are key to maintaining positive momentum. Failure here may lead to short-term bearish retracements down to $0.19 or lower, risking erasure of most recent gains. Bullish drivers supporting upward momentum include Bitcoin’s strong rally past $112,000, renewed interest from influential figures like Elon Musk, and growing institutional inflows amid ETF approval hopes.

According to Ali, a cryptocurrency analyst, Dogecoin has a chance of reaching $0.36 if the price remains above $0.25. If Dogecoin ends today in the red, it will have dropped for the third day in a row. The cryptocurrency fell 6.53% in the last 24 hours to $0.247.

Elsewhere in the crypto market, the GENIUS Act stablecoin legislation passed in the U.S. boosted markets, including meme coins. However, XRP collapsed by 8% following a significant rally, with XRP experiencing a 10,409% increase in an extreme liquidation imbalance.

In summary, Dogecoin is currently at a critical technical support test after a strong rally, with short-term bullish momentum hinging on its ability to hold $0.24–$0.26 and eventually break through $0.40 resistance. The confluence of strong accumulation zones, institutional interest, and broader crypto bullish catalysts underpins a cautiously optimistic outlook—though macroeconomic factors like Fed policy remain important risks to watch closely.

1. The recent correction in Dogecoin, although causing some selling pressure across many tokens, is not deterring crypto investors completely, as strong historical accumulation zones between $0.056 and $0.27 offer a robust foundation.
2. A significant factor contributing to Dogecoin's potential to reach $0.36, as suggested by cryptocurrency analyst Ali, is the price remaining above the critical support of $0.25.
3. Despite the short-term bearish retracements due to macroeconomic factors like the Fed policy decisions, positive catalysts like Bitcoin’s strong rally, renewed interest from influential figures, and growing institutional inflows maintain a cautiously optimistic outlook for the crypto market.
4. The passing of the GENIUS Act stablecoin legislation in the U.S. has boosted markets, including meme coins, though some cryptocurrencies like XRP have experienced a setback with an 8% collapse following a significant rally.
5. It's worth noting that Dogecoin's medium to longer-term upside depends on a decisive close above the $0.40 resistance, which, if achieved, could signal a major shift in market sentiment and potentially target the $0.40 to $0.45 zone.

Read also: