Dogecoin Drops 8% but Shows V-Shaped Recovery in Boost for Bulls

Dogecoin is exhibiting tentative signs of recovery following a sharp intraday decline that briefly drove prices to multi-week lows. This sell-off, largely attributed to prevailing macroeconomic uncertainties and ongoing geopolitical tensions, encountered significant buying interest near the $0.151 level, underscored by a volume surge to 828 million units during the period of heaviest selling pressure. Since this point, DOGE has stabilized around the $0.157 mark, establishing higher lows and hinting at the potential formation of a bottom.

News Background

The broader crypto market has been under considerable pressure from global economic headwinds, including escalating trade disputes and increasingly hawkish stances from central banks. DOGE, often considered an indicator of retail investor sentiment, has been particularly susceptible to risk-off asset reallocation. However, despite the observed volatility, network activity has remained consistently stable, and on-chain data suggests the presence of accumulation patterns.

Analysts are identifying the $0.151 level as a critical support zone following the recent 8% price dip. As central banks continue to express concerns regarding inflation, and with crypto markets demonstrably sensitive to macro-level news, DOGE’s ability to recover from its recent lows may attract short-term traders seeking early indications of a potential rebound.

Price Action

DOGE experienced a rapid price decline from $0.164 to $0.151 during the 21:00 hour on June 21st, accompanied by a surge in volume to 828 million units – the highest hourly volume recorded in over a week. This event appears to have marked a clear point of capitulation, followed by a modest recovery as buyers entered the market.

The price has subsequently rebounded to approximately $0.157, where it is currently consolidating within a short-term range. During the most recent trading session, DOGE has printed a series of higher lows, including a minor breakout attempt at 06:57, which saw volume increase to nearly 8 million units. Immediate resistance is now situated in the $0.157–$0.160 range, while support remains firmly established at $0.151.

Technical Analysis Recap

• DOGE recorded a 7.9% range over a 24-hour period, declining from $0.164 to $0.151.
• The capitulation event at 21:00 was characterized by 828 million in volume, confirming $0.151 as a significant support level.
• Price has rebounded to $0.157, where it is currently consolidating with decreasing volatility.
• The formation of higher lows suggests an early accumulation pattern may be developing.
• The resistance zone is located between $0.157 and $0.160; a close above $0.160 is required for confirmation of a breakout.
• Support at $0.151 is reinforced by extreme volume and a V-shaped bounce.
• The MACD is trending towards positive territory; the RSI is neutral at approximately 48, indicating potential for upside if momentum builds.