Dogecoin Battles to Hold $0.20 as Bulls Lose Control

Coin WorldSaturday, Mar 1, 2025 4:35 pm ET

1min read

Dogecoin, the popular meme-based cryptocurrency, has been facing intense selling pressure and market-wide volatility, leading to a decline in its price. Despite the challenges, Dogecoin has managed to trade above the $0.20 level, but bulls have lost control of the price action, putting the cryptocurrency at risk of further declines if it fails to hold key support levels.

Analyst Ali Martinez shared a technical analysis, revealing that Dogecoin is testing a high-time-frame support level around $0.18. This level has historically acted as a strong demand zone, making it crucial for bulls to defend it. If Dogecoin manages to hold above this support and reclaim the $0.22 level, a short-term recovery rally could be possible. However, if selling pressure persists and Dogecoin loses the $0.18 support, the next stop could be significantly lower, as market conditions remain uncertain.

Dogecoin is currently trading below the $0.25 mark, a key price level that will determine its short-term direction. Analysts are warning of further downside risks as the market continues to face heavy selling pressure. The meme coin sector has been hit the hardest during this correction, with Dogecoin leading the way with a 36% drop in the past two weeks. Sentiment remains bearish, and investors are looking for signs of stability before considering any potential recovery.

Martinez's technical analysis also revealed that Dogecoin is trading above a critical support level around $0.18, which is crucial for maintaining the long-term bullish structure. If bulls manage to hold above this mark, it could prevent further downside and provide a foundation for a recovery rally. Martinez notes that Dogecoin is currently holding around the lower boundary of a macro ascending channel, which has historically acted as a strong support zone for price rebounds.

If Dogecoin holds this level, a massive rally could follow, potentially pushing the price back toward the $0.25 resistance level. However, if the support fails, Dogecoin could experience a deeper correction. The next few days will be critical in determining whether Dogecoin can sustain its bullish structure or if it will continue its downward trend.

Dogecoin is currently trading at $0.20, sitting at a crucial short-term resistance level just below $0.21

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