Are Dogecoin Bulls Losing Control? Can This Key Support Prevent Another 15% Drop?

Dogecoin price has managed to bounce after a sharp selloff that dragged the price to $0.078 from a stabalised range around $0.1. The buyers have stepped in at a key support zone and prevented a deeper decline. With this, the price has reclaimed $0.086, but the selling pressure continues to hover over the rally. As a result, the DOGE price finds itself at a critical crossroads, where the next move could define its short-term trend.

The recent decline wiped out much of the bullish momentum that had built up over the past few weeks. Although DOGE has stabilized, it continues to trade below important resistance levels, suggesting that traders remain cautious. If buyers fail to defend the current support area, the market could be vulnerable to another wave of selling.

Bulls Defend Support, But Trend Hasn’t Changed Yet

The daily chart shows that Dogecoin fell sharply from the $0.10 region before finding strong buying interest around the $0.078-$0.080 zone. That area has acted as a reliable demand zone in the past, and once again, buyers stepped in to absorb selling pressure, triggering a rebound.

However, one bounce does not automatically signal a trend reversal. The price is still trading below key resistance levels near $0.097 and $0.105, while the broader structure continues to show lower highs. Until those levels are reclaimed, the recent recovery looks more like a relief rally than the beginning of a sustained uptrend.

The RSI has recovered from oversold conditions, showing that selling pressure has eased, but it remains below the neutral 50 level, indicating that bullish momentum is still limited. Meanwhile, the MACD is beginning to flatten, suggesting the bearish momentum is fading, although it has yet to produce a convincing bullish crossover.

For now, the $0.078-$0.080 support zone remains the most important level on the chart. As long as buyers defend this area, there is room for another recovery attempt. But a decisive break below it would shift the advantage back to sellers.

Dogecoin Open Interest Rises as Traders Position for Next Move

Dogecoin’s derivatives market is showing signs of renewed activity even as the price remains under pressure. According to the provided Open Interest chart, total Open Interest has recovered to approximately $1.1 billion after falling sharply during the recent correction.

The recent drop in both price and Open Interest suggested that leveraged positions were being unwound as traders exited the market. However, the latest rebound in Open Interest, from roughly $1.0 billion to around $1.1 billion, indicates that fresh positions are beginning to enter the market. This suggests traders are positioning themselves for the next major move rather than remaining on the sidelines.

That said, Open Interest is still significantly below its May peak of nearly $1.8 billion, showing that speculative participation has not fully recovered. Rising Open Interest without a decisive price breakout often signals increasing volatility, but it does not reveal the direction of the next move.

Wrapping it Up: What’s Next for Dogecoin (DOGE) Price Rally?

Dogecoin has successfully defended an important support zone, giving bulls a chance to stabilize the recent decline. If buyers can push the price above the immediate resistance around $0.086-$0.088, momentum could improve and open the door for a move toward the next resistance levels near $0.097 and potentially $0.105.

A breakdown below the $0.078-$0.080 support zone would invalidate the current recovery attempt and could trigger another round of selling, with the next downside targets around $0.072-$0.074—roughly 10-15% below current prices.

For now, Dogecoin is sitting at a make-or-break level. The support is holding, but bulls have yet to prove they are back in control. The next few trading sessions could determine whether this bounce develops into a meaningful recovery or simply becomes another pause in the broader downtrend.