The cryptocurrency market is undergoing a massive 'bloodbath', with investor confidence continuing to decline. Dogecoin (DOGE) futures open interest has decreased by 8.24% in the past 24 hours, with the total number of unsettled active futures contracts sharply reduced to 15.16 billion DOGE, equivalent to approximately $3.25 billion.
Dogecoin's price is currently under pressure near the key support level of $0.22, with the $0.20 level being closely watched as it could become a crucial turning point. Historical data shows that price consolidation near these levels often precedes significant upward movements. If buyers can successfully hold the $0.20 level, it may lay the foundation for a rebound; if lost, the price may further decline.
Bearish market structure is taking effect.
Dogecoin is struggling to maintain critical technical levels, with a risk of falling into a bear market in the short term, but there are still opportunities for a rebound. Despite the prevailing bearish sentiment in the market, Dogecoin may still rebound from the current levels, avoiding a more significant decline. Technical indicators show that the 50-day moving average is still above the 100-day and 200-day moving averages, indicating that the medium-term bullish structure has not completely broken down. The price is currently holding above the 50-day moving average support, which has previously effectively contained further declines. If this support can be maintained, the possibility of a rebound will increase.
Can Dogecoin's price rebound from $0.20?
If Dogecoin quickly falls below the 50-day moving average (EMA), it will test the 100-day moving average ($0.21) support; if it loses that as well, it may drop to the 200-day moving average ($0.20). Once these key supports are lost, the market will enter a clearly bearish phase, significantly weakening recovery prospects. Conversely, if the current support can be held, Dogecoin is expected to re-test the resistance range of $0.24 to $0.26, which has blocked upward movement multiple times in recent months. Breaking through this resistance will be a clear signal for the start of a bullish trend.
