- The Dogecoin price faces a risk of prolonged correction to $0.157.
- The $0.211 level, backed by 50- and 100-day exponential moving averages, stands as a key support level for buyers.
- The formation of a rising channel pattern drives a slow yet steady recovery in DOGE price.
- The derivative market shows a steady bearish momentum in DOGE’s future open interest, which currently stands at $3.32 billion.
DOGE, the largest meme cryptocurrency by market cap, dives over 4.53% to trade at $0.22. The selling pressure aligned with the broader market as Bitcoin reverted just inches away before hitting a new high at $123,236, renewing correction sentiment in the market. As the asset class is more susceptible to fresh market changes due to its natural volatility, Dogecoin faces a major price pullback. The bearish momentum in DOGE could further accelerate as the derivative shows a continued downtrend in further open interests.
Dogecoin Price Faces Downside Risk Amid Weak Futures Open Interest
Over the past week, the Dogecoin price showed a sharp recovery from $0.188 to $0.246, registering a 31% growth. The buying pressure likely followed the broader market uptrend, as the majority of major cryptocurrencies showed renewed recovery after a brief correction.
As the support from the broader market weakens, this dog-themed price has witnessed an immediate reversal to its current trading value of $0.22. Simultaneously, Dogecoin’s market cap is pulled back to $33.68 billion.
Despite the price volatility, the DOGE futures open interest shows no major movement from its prevailing downtrend, currently standing at $3.32 billion. This declining or stagnant movement in OI data indicates that derivative traders are either exiting their positions or hesitating to enter new ones due to market volatility.
This lack of fresh capital inflow into derivatives markets could support continued correction in the DOGE price.
DOGE Futures Open Interest | Coinglass
With the intraday sell-off, the coin price formed a notable lower high formation in the asset’s 4-hour time frame. This downswing indicates a bearish shift in market sentiment as investors follow a sell-the-bounce.
With sustained selling, the Dogecoin price could plunge another 6% to retest the combined support of the 50- and 200-day exponential moving average at $0.211. A bearish breakdown below this floor will accelerate the bearish momentum for a prolonged correction.
DOGE Price Drives a Steady Recovery Within Channel Pattern
The daily chart analysis of Dogecoin price shows the recent market correction as a bear cycle within the formation of a rising channel pattern. Since March 2025, the coin price has resonated actively within the two ascending trendlines of a channel, driving a slow yet steady recovery for buyers.
Within this confined range, the 50-and-200-day EMA acts as a midline pivot level for market participants. The potential breakdown will intensify the seller’s strength in the current momentum to drive another 25% fall to hit the bottom boundary at $0.155.
The bottom trendline has acted as a major accumulation zone for buyers to renew exhausted bullish momentum. Historically, a reversal from the lower trendline had renewed the recovery momentum in price and pushed a rally ranging for nearly 100%.
The potential downfall could also seek support at $0.189 to slow down bearish momentum. However, until the pattern is intact, the Dogecoin price is susceptible to such high price swings, suggesting a lack of uncertainty from buyers or sellers.
DOGE/USDT – 1d Chart
On the contrary, if the coin price manages to hold $0.211, the buyers could challenge a breakout from the new emerging downsloping trendline to signal renewed buying recovery.
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