Dogecoin (CRYPTO: DOGE) has entered a critical phase in its price movement as bulls and bears battle for control following a strong rally that saw a 100% price surge from early April.

After facing rejection at the $0.26 resistance level, DOGE has dropped over 18% since reaching a local high on May 10. The price currently hovers around $0.23, maintaining position above the 200-day Exponential Moving Average (EMA) at $0.21, which has served as a key support level in recent days.

Analyst Predicts Return to Key Level

Analyst Ali Martinez predicts that Dogecoin may return to the $0.213 zone if current support fails to hold. This price zone previously functioned as both resistance and support during the April breakout and could act as a magnet for price action.

"May want to revisit $0.213!

This zone acted as both support and resistance during the April breakout and could attract price towards it again.

A breakdown below $0.213 would open up potential further downside towards $0.19," analyst Ali Martinez said.

The correction comes amid broader market uncertainty that has particularly affected meme coins. Despite this pullback, DOGE has maintained its position above critical support levels.

Technical Picture Shows Mixed Signals

The daily chart reveals DOGE trading between the 200-day EMA ($0.219) and the 200-day Simple Moving Average ($0.269), creating a battleground zone where price has consolidated.

Recent candles have formed tight-bodied structures, indicating market indecision. Trading volume has notably declined since the early May breakout, suggesting a loss of momentum and trader interest.

The Relative Strength Index (RSI) on the daily chart reads 61, staying above its neutral level of 50. This technical indicator points to maintained bullish momentum despite the price correction.

If DOGE loses the $0.219-$0.220 support zone, the next logical support sits near $0.213, aligning with analyst concerns of a potential retest. A breakdown below this area could trigger further downside pressure toward the $0.19 zone.

On-Chain Metrics Paint A Positive Outlook

On-chain data suggests a potentially positive outlook for Dogecoin. According to Coinglass’s OI-Weighted Funding Rate data, the number of traders betting on price increases exceeds those expecting further declines.

The funding rate stands at 0.0094% for Dogecoin, reflecting a positive rate where longs are paying shorts. This metric often signals bullish sentiment in the market.

Meanwhile, Santiment’s Age Consumed index also projects a bullish outlook. Recent spikes in this index suggest dormant tokens are in motion, which has historically preceded price increases for the meme coin.

The latest uptick on Tuesday forecasted potential upward movement, adding weight to the bullish case despite recent price weakness.

If the 200-day EMA support at $0.21 remains strong, DOGE could extend its rally by approximately 20% from current levels to retest the 50% price retracement level at $0.27.

However, a break and close below the 200-day EMA would likely extend the correction toward the next weekly support at $0.18.

The coming days will be decisive for DOGE’s mid-term trend. If bulls reclaim control and push price back toward $0.26 resistance, the meme coin narrative could regain strength. For now, all eyes remain on this pivotal support zone as Dogecoin navigates uncertain market conditions.