 ▲ Dogecoin (DOGE) / ChatGPT-generated image |
Dogecoin (DOGE), which had been staging a short-term rally, quickly surrendered its gains after failing to break through a key resistance level and has now entered a full-fledged downtrend.
According to crypto-focused outlet NewsBTC on February 16 (local time), Dogecoin encountered strong selling pressure at the $0.150 resistance zone, losing the upward momentum it had built. Key support levels that had been defending the price collapsed one after another, signaling that bears have seized control of the market. Coupled with Bitcoin’s (BTC) price stagnation, speculative capital has rapidly exited, deepening the decline.
Technical analysts noted that Dogecoin’s Moving Average Convergence Divergence (MACD) has strengthened bearish momentum, while the Relative Strength Index (RSI) has plunged below the 50 level, indicating a seller-dominant market. The breakdown of a bullish trendline formed around $0.135 has reportedly triggered a wave of stop-loss selling from short-term investors. As overall risk appetite in the digital asset market contracts, the meme coin sector appears to have been hit first.
If Dogecoin fails to hold the $0.130 support level, the price risks retreating past $0.115 and toward the $0.100 zone. Although buyers are attempting to establish support at lower levels, rebounds without accompanying trading volume are likely to remain technical bounces that pave the way for further declines. Should the downward wave persist, concerns are mounting that the market may face a prolonged bottoming process rather than a quick recovery.
Changes in the derivatives market are also sending negative signals for Dogecoin. Declining open interest suggests waning market attention, and any large-scale liquidation event could significantly amplify price volatility. According to data from Santiment, whale activity has slowed while retail investors’ buying sentiment has weakened, leaving Dogecoin trapped in a typical downward channel.
The recent surrender of gains has left the Dogecoin ecosystem facing tasks such as securing tangible utility and reorganizing its community. Until a trend reversal is confirmed on higher time frames, a conservative market approach appears essential. Only after overcoming selling pressure and establishing strong support levels can a new upward cycle be anticipated.
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