Dogecoin has been stuck in a sharp decline since early October, sliding along a descending channel that has kept sellers firmly in control. The king of memecoins fell more than 14% last month and even slipped below the closely watched resistance level of $0.20. Despite this continued weakness, on-chain activity appears to have intensified, suggesting that the context may not be as one-sided as the chart suggests.
In Brief
- Dogecoin is struggling to retake the $0.20 resistance level which remains crucial to reversing the ongoing downtrend.
- Around 11.72 billion Dogecoin was previously accumulated near $0.20, making it a decisive zone for market sentiment.
- Active wallets jumped to 71,589, hitting the highest level since September as participation widens.
Dogecoin’s Crucial Price Zones Guide Short-Term Direction
Crypto analyst Ali Martinez highlighted on Thursday that $0.20 remains the major resistance that Dogecoin must reclaim. He explained that around 11.72 billion Dogecoin has been accumulated around this area, making it a make-or-break level for sentiment. With the token hovering around $0.13, the market is still struggling to climb towards this obstacle. If buyers can regain this area and turn it into new support, Dogecoin could relive the type of rally seen in September, when it briefly touched $0.30 and posted one of its biggest climbs of the year.
Offering a broader reading, the BitGuru analyst noted that DOGE continues to staying above a crucial support around $0.13. He mentioned that previous bullish phases often started in this region and added that the token has now stabilized in its middle zone, suggesting that it could test $0.18 if momentum resumes. At this point, a discrete accumulation tends to build, laying the foundation for the next upward move.
Large holders have also returned, accumulating around 480 million Dogecoin as general confidence stabilizes in the market. This corresponds to increasing activity in derivatives, where the daily volume of futures contracts has climbed to around $2.85 billion. Reinforcing this trend, Martinez reported that active wallets jumped to 71,589 — the highest reading since September — suggesting that participation is widening again.
Technical indicators show continued pressure
Even with these encouraging signals, Dogecoin's technical structure remains bearish. The price remains well below the 50- and 100-day simple moving averages, showing that downward pressure dominates the short- and long-term outlook. The 50-day SMA continues to slope lower and is below the 100-day SMA, reinforcing the negative trend. With both of these averages trending down, the chart indicates that any attempt to return to $0.20 would first require a convincing breakout above the 50-day SMA, which remains a key obstacle for buyers looking to regain control.
Dogecoin has also taken a dual approach towards traditional finance, with Grayscale and Bitwise each launching their own spot ETFs linked to the token. However, activity around the funds remained tepid, with a cumulative total net inflow of $1.88 million in the first two weeks, indicating that engagement with ETFs remains modest.
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