Dogecoin (DOGE) price dropped sharply on Monday, extending losses from the prior week. The meme coin slid to as low as $0.169, threatening to open the door for further weakness toward $0.15.

However, the token recovered somewhat in the following hours, trading above $0.17 at the time of writing.

Dogecoin plummets 8% as crypto weakness continues

Dogecoin price slipped to a low of $0.169 in the early hours of Monday, extending declines from the past week. The token fell by about 8% in the past 24 hours, and 16% over the past week.

This downturn follows broader weakness in the crypto market, where Bitcoin and Ethereum also fell sharply.

The price action brought fresh attention to whether this presents a buying opportunity or a warning sign for traders.

Dogecoin is now trading at a fragile consolidation zone, with daily support around $0.169-$0.17 and prior resistance lingering near $0.19-$0.20.

A sudden dip triggered an oversold signal on the RSI, while the MACD still trends bearish, suggesting that momentum isn't completely reversed.

If DOGE holds above $0.17, it could rebound toward $0.20. But a break of $0.169 might expose deeper support levels near $0.15.

Dogecoin price: technical analysis

Despite its meme coin status, DOGE maintains a top-10 crypto market cap of about $25-26 billion. Its ecosystem is almost entirely driven by community and social media buzz, while actual utility remains limited.

This explains the token's outsized volatility, which saw it swing wildly from $0.1 to $0.7 in 2021.

Moreover, DOGE saw about $20 million get moved into Coinbase (NASDAQ:COIN) recently, sparking a brief rally in the token. This signals selective institutional accumulation of the meme coin.

However, traders should keep an eye out for meme-coin volatility, as these tokens can rapidly shift on changes in sentiment or hype cycles.

For example, some analysts attribute the recent Trump-Musk fallout to be a factor in the price drop.

Dogecoin price: what's next?

In the short-term outlook, analysts expect modest recovery to $0.198-$0.20 over the coming week if broader crypto sentiment stabilizes.

In a more bullish macro scenario, DOGE could test $0.25-$0.30 as crypto rebounds.

Conversely, if it fails to regain the $0.17 support, then there's a clear downside path toward $0.15, with a tail case as low as $0.10-$0.14.

Should you buy Dogecoin now?

Dogecoin now stands at a critical technical juncture: support near $0.17 keeps the rebound path open, but the momentum remains cautious.

A small, speculative position may be justified, especially if buying close to the $0.17 support with a very tight stop-loss.

If you are seeking higher-risk, meme-driven opportunities, then you might consider it—but only with capital you're prepared to lose.

If DOGE fails to hold above $0.17, then don't chase it lower; instead, wait for stabilization above $0.19—a rebound rally there could signal renewed upside toward $0.25.