Dogecoin is below $0.25 amid profit-taking and Bitcoin volatility, but the DOGE RSI crossover on May 7 suggests that bulls could still target $0.30 despite a short-term correction of 5.8% on Sunday, May 11.
Dogecoin (DOGE) Stalls Below $0.25 As Investors Await Bitcoin's Directional Signal
Dogecoin price entered a 5.7% pullback on Sunday, May 11, after three days of double-digit gains.
The correction reflects broader market consolidation as investors take profits and weigh macroeconomic indicators. DOGE price led the week’s rally, but sentiment cooled below $0.25 amid reduced risk appetite.
Trump’s confirmation of successful trade talks with China helped propel Bitcoin above $104,000, but political unrest, particularly the escalating military tensions between India and Pakistan over the past 48 hours, has slowed the meme coin’s momentum. It has triggered profit-taking in the asset and seen it respond to signs of panic in the market.
Market data from Coingecko further confirms the pause in momentum. As of press time on Monday, DOGE is trading at $0.2341, down 5.8%, matching Bitcoin’s -5.8% correction in BTC/DOGE terms (now at 0.052240 BTC).
The 24-hour DOGE trading volume also decreased from $4.5 billion to $3.5 billion, reflecting the movement of active capital out of speculative assets. Investors appear to be taking a cautious approach, waiting for a signal from institutional Bitcoin flows before reallocating capital towards riskier altcoins.
Derivatives: $20M as Dogecoin open interest drops 7.3%
The recent correction in DOGE is supported by a decisive change in derivatives sentiment. Total DOGE open interest fell 7.29% to $2.80 billion, while daily trading volume fell 19.55% to $7.74 billion.
Options volume increased 21.72% even as options open interest increased 49.49%, suggesting directional bets are building despite low intraday activity.
Liquidation data shows that a total of 20.15 million long positions of DOGE were liquidated in the past 24 hours, with 75% of them being long. This points to overleveraged bullish bets when the price drops below $0.25.
Long/short ratios paint a mixed picture. While the account-based long/short ratios on Binance and OKX sit at 2.83 and 2.82, the top trader’s long/short ratio exceeds 5.00, suggesting a shift in focus from high-volume accounts.
What’s next for Dogecoin price in the coming week?
Dogecoin’s bullish structure remains intact as long as $0.225 holds as support. The recent 5-day RSI crossover confirms the bullish medium-term momentum, with $0.30 remaining a valid target if Bitcoin consolidates above $104K.
Strategic traders will now be keeping an eye on Bitcoin ETF flows and US macro data releases this week. If institutional appetite persists, meme coins like DOGE could make another move higher.
However, the risk remains on the downside if Bitcoin fails to hold above $100K. A drop below $0.225 could trigger another round of liquidations, temporarily invalidating the bullish thesis.
Dogecoin Price Prediction: RSI Crosses Over 5-Day Momentum, Confirms $0.30 Target
Dogecoin price appears to be consolidating above $0.23, with renewed momentum after a temporary rejection near $0.25.
The 5-day RSI crossover remains at 70.85, indicating continued bullish momentum despite the recent decline.
The rally first printed a clear high-low (HL) structure, followed by a new local high-high (LH), reinforcing the bullish continuation.
This positive Dogecoin price prediction pattern, coupled with continued support above the lower limit of the supertrend at $0.191, suggests that the broader upward structure remains valid and is likely to resume if the current consolidation resolves to the upside.
The Relative Strength Index (RSI) crossover occurred on May 7, when the purple RSI line (short-term momentum) decisively crossed above the yellow signal line (long-term average).
This bullish crossover typically signals a change in market momentum from neutral or bearish to a renewed uptrend. Since this inflection point, the purple RSI has been above the yellow line, confirming the continued bullish strength over the past five days.
If the momentum continues this week, especially with the recovery above $104K in Bitcoin price forecast today, DOGE could reclaim bullish momentum and aim for this upper level.
A key confirmation would be a daily candle closing above $0.25, the recent rejection level, supported by a renewed positive volume delta, which printed $27.96M today after a sharp negative surge on May 11.
A bearish break below the HL at $0.19 would invalidate the bearishness. Such a move would breach the current high.