Dogecoin News Today: Dogecoin Tests $0.20 Support Amid Bearish Signals and Derivatives Surge

Dogecoin (DOGE) is currently navigating a pivotal moment in its price trajectory, with the $0.20 support level becoming a focal point for traders and analysts alike. The meme coin has recently moved below the $0.220 zone against the US Dollar and is now consolidating near $0.2050, raising concerns about a potential breakdown [1]. Technical indicators such as the MACD and RSI signal weakening momentum, reinforcing the bearish bias [2]. A decisive close below $0.20 could shift the near-term outlook, potentially unraveling the structure assumed to have bottomed in August and extending the current wave 2 correction [1].

The 4-hour chart reveals a symmetrical triangle pattern forming between $0.21 and $0.22 since mid-July, often a precursor to a significant price movement [3]. A successful breakout above $0.2431 could aim for levels as high as $0.28–$0.30 [2]. However, if DOGE fails to hold above $0.208—part of a key Fibonacci retracement level—this would invalidate the bullish case and expose the coin to a potential decline toward $0.18 [3].

Derivatives trading volume has surged by 127% in the last 24 hours, reaching $8.74 billion, highlighting increased speculative activity [1]. Despite this, open interest has declined by 4.93% to $3.46 billion, primarily due to profit-taking and liquidations. Options activity has also risen, with both volume and open interest growing by over 30%, indicating a stronger appetite for hedging and directional bets [1]. The long/short ratio across major exchanges remains strongly bullish, with Binance reporting a ratio of 5.6667, underscoring the heavy concentration of long positions [1].

Notably, liquidation data shows $4.74 million in short liquidations over the past 24 hours, signaling a bearish squeeze on short sellers [1]. While this suggests that the market is currently favoring longs, the concentrated bullish exposure also introduces risk. A sudden pullback could trigger a reversal in sentiment, leading to a short-term sell-off as traders unwind their long positions.

The $0.20 level remains a critical test. If DOGE manages to stay above it, it could provide a psychological floor that allows for a potential rebound. However, a breakdown below this level may lead to further declines toward $0.18 [2]. Analysts have highlighted that a retest of the $0.20–$0.21 range could still provide an opportunity for a recovery, provided buyers step back in [4].

With DOGE's 24-hour trading volume reaching $2.3 billion amid heightened volatility, traders are closely watching for confirmation of a new wave or pattern [1]. The broader market context also plays a role, as Bitcoin stabilizes near $117,000 and altcoins show mixed signals. The outcome of the next few hours could determine the tone for the remainder of the month.

Sources:

[1] AInvest - Dogecoin Eyes 30% Surge as Symmetrical Triangle and Derivatives Signal Key Breakout

https://www.ainvest.com/news/dogecoin-news-today-dogecoin-eyes-30-surge-symmetrical-triangle-derivatives-signal-key-breakout-2508/

[2] Mitrade - Dogecoin (DOGE) Bears Eye Breakdown Below $0.20

https://www.mitrade.com/insights/news/live-news/article-3-1068621-20250826

[3] The Tradable - Dogecoin Price Alert: Dogecoin Could Drop to $0.20

https://thetradable.com/crypto/dogecoin-doge-price-alert-dogecoin-could-drop-to-020-0--v

[4] AMBCrypto - Dogecoin Price Prediction: 3 Key Levels to Watch for This Week

https://ambcrypto.com/dogecoin-price-prediction-3-key-levels-to-watch-for-this-week/