The price of Dogecoin is facing a critical moment. It is situated in a “make-or-break” band between $0.192 and $0.1940. This follows a 5% correction led by Bitcoin, which dragged down the main cryptocurrencies. The price of Dogecoin in decisive zone tests investors’ risk appetite, as its price action impacts the liquidity of the altcoin market.
The bearish pressure was severe in the recent session. DOGE broke the key support of $0.1940, momentarily falling 5.5% to the $0.192 level. This pullback was not an isolated event. The overall crypto market lost $106 billion in total capitalization. Likewise, other large-cap altcoins felt the blow. XRP registered drops near 5% and Ethereum fell over 4% during the week, demonstrating the breadth of the correction.
This coordinated movement underscores the high dependency of altcoins on Bitcoin’s sentiment. The correction also increased the market’s implied volatility. The BVIV index, which measures expectations of fluctuations in BTC options, broke its trend resistance, suggesting a higher risk of sharp moves. For Dogecoin, the current range is vital. Holding it would allow supports to consolidate. However, losing this level would open the door to a search for demand in the $0.175 to $0.18 zone, where an initial rebound was observed.
Whale accumulation or a bear trap for Dogecoin?
Interestingly, the market sentiment signals are mixed. The retail sentiment indicator reached an annual low (1/5), reflecting extreme pessimism among small investors. On the other hand, on-chain data shows an opposite narrative. Large holders (whales) increased their exposure by 200 million DOGE. This suggests selective accumulation, taking advantage of the deep liquidity on the dip. Nonetheless, Dogecoin’s technical profile adds structural risks. Its inflationary supply, with 5 billion new coins annually, can negatively affect the perception of value during prolonged periods of stress.
Bitcoin’s evolution will continue to set the pace. BTC stabilization is crucial for DOGE to hold the $0.192 level. While whale accumulation offers support, it also increases the risk of concentrated moves if they decide to rotate their positions. The scenario for Dogecoin in decisive zone is clear. If it fails to hold and breaks $0.1940 sustainably, selling pressure will significantly broaden. This would lead the price toward the $0.175 zone, in an environment of rising volatility that makes derivatives hedging more expensive.
