Dogecoin Finds Support After Sharp Drop as Bulls Regain Momentum

Dogecoin’s recent price movement shows a classic battle between bears and bulls, with the meme cryptocurrency finding stability after a significant downtrend. The coin experienced a 9.7% drop from $0.237 to $0.214 before buyers stepped in at key support levels. This buying pressure has created what analysts describe as a “panic zone retest” around the $0.215 mark, which has so far held firm against selling pressure. Market structure indicates DOGE is currently navigating a falling wedge pattern, typically considered a bullish reversal formation when broken to the upside. The Ichimoku cloud on short-term charts shows price lodged in equilibrium territory, with multiple technical indicators converging to create tight reference levels between $0.212 and $0.225. For traders, the immediate focus remains on whether DOGE can break above the descending trendline resistance near $0.219-$0.220. A decisive move above this level could target the $0.235-$0.244 range, while failure to hold current support might see prices retreat toward $0.20 or even $0.185 in the near term. Technical Analysis Highlights DOGE formed a descending channel with clear resistance at the $0.235 level, where selling pressure consistently emerged. A notable support zone developed around $0.215-$0.217, confirmed by increased volume during the 13:00 hour. V-shaped reversal pattern formed with the bottom at $0.215 around 13:14, followed by steady accumulation. Volume significantly increased to over 10 million units around 13:30, triggering a sharp upward movement. New support zone established at $0.218, with multiple high-volume candles confirming strong buying interest. Overall price action suggests bearish momentum with intermittent consolidation phases. External References ” Dogecoin Price Tests Panic Zone At $0.21, Breakdown Could Lead To Price Crash “, NewsBTC, published May 19, 2025. ” Dogecoin (DOGE) Price Prediction for May 20 “, Coin Edition, published May 19, 2025.

Source: CoinDesk