The crypto market has plunged over the past three days, but Dogecoin remains resilient at the $0.20 psychological level. This stability suggests a possible recovery as DOGE consolidates above key support.
Meme Coins Show Signs of Recovery
Over the last 24 hours, Shiba Inu and Pepe have climbed 3.03% and 2.78%, respectively. Other meme tokens like DogWifHat and ai16z have posted double-digit gains, showing renewed interest at lower price levels. Dogecoin now faces a similar opportunity for an uptrend.
24-hour price chart. Source: CoinMarketCap
Currently, DOGE trades at $0.2089 with a $30.91 billion market cap, accounting for more than half of the meme coin sector’s $58.41 billion valuation. If Dogecoin rebounds, it could fuel a broader meme coin rally.
Related article: Dogecoin’s Decline Continues: Will It Rebound or Drop Further?
Dogecoin liquidations have spiked to $10.01 million in the past 24 hours. Long liquidations dominate at $7.4 million, while short liquidations stand at $2.61 million. This increased volatility has pushed the funding rate to 0.0096%, meaning bullish traders must pay a higher premium to maintain long positions.
Trader Sentiment Remains Mixed
The long-to-short ratio sits at 0.9704, slightly favoring bearish positions. However, traders on Binance and OKEx remain bullish, with long-to-short ratios of 3.755 and 5.14, respectively. Meanwhile, Dogecoin’s open interest has risen 2.37% in the last 24 hours to $1.33 billion.
Despite this short-term increase, it remains down 67% from its $4.07 billion peak three months ago. Dogecoin continues to defend the $0.20 support level despite market turbulence.
Related article: Dogecoin Whales Trigger Speculation With 210M DOGE Accumulation
With multiple rejections at lower levels, DOGE has formed a double-bottom pattern, with a breakout neckline at $0.2139. In the last 12 hours, Dogecoin has printed three consecutive bullish candles, rising 5.27%.
If the breakout succeeds, DOGE could target the 50-EMA resistance at $0.2294, near the overhead trendline. However, a drop below $0.1953 could drive the price toward the $0.15 support level.
