Dogecoin is still trading under pressure, consolidating below the $0.24 area as the market average indicates a bearish market. The latest price action explains how higher lows have formed since this token reached its peak at the beginning of 2025, suggesting a loss of momentum. The downtrend has turned $0.14 into a key target, and technical arrangements indicate that there are more risks to the downside in the shorter term.
DOGE is trading around $0.18 as it has been unable to maintain higher levels this year. The price chart shows frequent rejections at known resistance areas around $0.17, confirming control. This area was a support level during the early stages of the 2025 bull run but has now turned into resistance. A break of this area implies that sellers are still in control and it seems likely that a test of the $0.14 area will occur, provided that volume continues to decline.
Decreasing Volume Indicates Less Participation in the Market
CryptoQuant data shows that spot trading volume on exchanges has significantly decreased, indicating a bearish sign of reduced trading participation. Although the price surge at the end of 2024 brought DOGE close to $0.48, the subsequent correction and decline in volume suggest a waning interest in this asset from retail and institutional investors. This change limits the potential for a strong recovery without external sparks or tailwinds.
The volume trend also does not show any serious buyers, undermining the argument. In the past, sharp increases in volume followed significant moves of DOGE, but the current calm suggests traders are in a wait-and-see position. The lack of substantial inflows could mean that DOGE may struggle to overcome the resistance level, thus the likelihood of further losses is very high.
Support Area and Market Outlook
The chart shows the Funding Rate weighted by Open Interest (OI) of Dogecoin (DOGE) as well as its price from mid-December to mid-June. The OI-weighted funding rate is predominantly positive, implying popularity for long positions, but there have been several spikes causing damage, indicating periods of short dominance. Interestingly, the funding rate has also stabilized and remained consistently positive since April, when DOGE's price stabilized relatively, fluctuating between $0.15 and $0.22.
The positive correlation between funding rates and price indicates a more pronounced bullish sentiment as DOGE surpassed the $0.20 mark in May. Periodic spikes into negative funding levels suggest hesitation or short-term adjustments among traders.