Dogecoin Faces 23% Drop as Bulls Eye $0.245 to $0.25 Zone for Possible Rebound

Key Insights:

• Dogecoin faces a 23% correction, dropping from $0.29 to $0.225.
• Analysts spot bullish divergence and SMA death cross, hinting at a potential price reversal.
• Dogecoin needs to maintain support at around $0.20 to avoid further bearish movement.

Dogecoin ($DOGE) has seen a significant drop of 23% recently, falling from its peak at $0.29 to approximately $0.225. Despite this, some analysts are still watching for a potential short-term rebound in the $0.245 to $0.25 range.

Dogecoin’s Recent Decline and Market Action

Dogecoin’s price has fluctuated significantly, with a sharp decline from $0.29 to $0.225, which marks a 23% correction. Market Analyst Umair Crypto had earlier predicted this decline, urging traders to take profits before the drop occurred. According to the latest data, the live price of Dogecoin is at $0.226, with a 24-hour trading volume of over $4 billion.

The movement over the past weeks shows a clear downtrend, but some potential signals could lead to a short-term upward move. Umair Crypto noted the presence of a bullish divergence, which could support a brief price reversal. However, the overall market structure appears weak, and traders remain cautious, waiting for further signs of strength.

Factors Driving Potential Rebound for Dogecoin

Analysts have highlighted two factors as potential triggers for a brief recovery in Dogecoin. The confirmed bullish divergence in the market is a pattern often associated with price reversals. Another factor is the 4-hour SMA death cross setup, which typically results in a short-lived upside push before any further weakness sets in.

Daan Crypto also mentioned that Dogecoin's trend has been slow but steady. While it has been making marginally higher highs and lower lows, it hasn’t shown significant volatility like other altcoins. Dogecoin is building a base, but it needs to maintain its uptrend. 

Support Levels to Watch

While Dogecoin is showing signs of potential recovery, the coin must hold the support level near $0.20. If the price falls below this, the outlook could quickly turn bearish. However, if momentum allows, Dogecoin could see a return to the $0.245 to $0.25 zone, where it could face further resistance before deciding its next move.

Traders are closely monitoring these levels to assess if the coin can hold its ground. If Dogecoin successfully holds above $0.20 and retests the $0.25 zone, it might regain some bullish momentum in the near term.