Feb 28, 2025 12:05
Dogecoin is trading at key demand levels after two weeks of massive selling pressure, with bears pushing DOGE down more than 30%. The meme coin sector has been hit the hardest during this market-wide correction, which began in mid-January, and as the market leader, Dogecoin has suffered the most. Related Reading: Solana Transfer Volume Crashes To $14.5M Whats Next for SOL? Investors have started to question the sustainability of the meme coin rally, especially as sentiment continues to weaken across the board. Glassnode metrics confirm this downward trend, revealing that Dogecoins open interest has dropped by 67% over the past three months. With DOGE now at a critical level, traders are watching whether bulls can step in to hold support and push prices higher. If buying pressure returns, Dogecoin could start a strong recovery rally, but if the trend continues, further liquidations and losses could follow. The next few days will be crucial as investors assess whether DOGE can recover or extend its decline in this volatile market. Dogecoin Faces Selling Pressure After this week’s market breakdown, Dogecoin has struggled to reclaim key price levels and still faces a serious risk of further declines. The meme coin sector has been one of the hardest-hit areas in the crypto space, with analysts blaming speculative meme coin trading as a key factor behind the broader crypto correction. As sentiment weakens, DOGE and other meme coins continue to lose ground, unable to recover from massive sell-offs. Top analyst Ali Martinez shared Glassnode data on X revealing that Dogecoins open interest has declined by 67% over the past three months. Open interest fell from an all-time high of $4.07 billion to just $1.33 billion today, highlighting that traders have lost interest in DOGE and that speculation has dried up. This data confirms the negative environment surrounding meme coins, and as the market leader, Dogecoin is setting the tone for the entire meme sector, which continues to struggle. For DOGE to regain momentum, bulls must step in and defend key demand levels. A break below current support could lead to even more selling pressure, while a reclaim of higher resistance levels could signal a potential recovery rally. With open interest and volume declining, Dogecoin remains in a critical position, and the next few weeks will determine whether bulls can take back control or if the downtrend will continue. Related Reading: XRP Breaks Down Below Key Demand Analyst Expects A Drop To $1.65 DOGE Dogecoin (DOGE) is currently trading at $0.21 after weeks of underwhelming price action. Bears remain in control, and momentum continues to push the price into lower levels, making it difficult for bulls to reclaim strength. DOGE has been in a steady downtrend, struggling to gain traction as meme coins face increasing selling pressure across the market. If bulls want to regain control, DOGE must push above the $0.24 level and hold it as support. Reclaiming this level would signal short-term strength and could trigger a relief rally toward higher resistance zones. However, with market sentiment still bearish, a breakout seems unlikely unless overall conditions improve. On the downside, if DOGE fails to hold current levels, a drop toward $0.15 could be expected. This level represents a significant psychological and technical support, but losing it would put DOGE in uncharted territory for this cycle. With open interest declining and liquidity drying up, bulls need to step in soon, or the downtrend could accelerate. Related Reading: Solana Loses Long-Term Support Level Analyst Shares Insights The next few days will be crucial as DOGE attempts to stabilize or continues to bleed out. If market conditions remain weak, further downside pressure could push DOGE into even lower demand zones.
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