Dogecoin has experienced intense selling pressure, losing over 30% in the past two weeks. DOGE is currently trading at $0.21, struggling to maintain key support levels amid market weakness.
How Dogecoin Lost Ground
According to Glassnode's on-chain data, long-term Dogecoin holders are in 'denial,' signaling growing uncertainty among investors who have held DOGE for extended periods. The DOGE Long-Term Holder Net Unrealized Profit/Loss (NUPL) indicator has been steadily declining, indicating that many early investors are either seeing diminishing unrealized profits or slipping into losses. If market conditions fail to improve, this cohort may be forced to sell, adding further downward pressure on the price.
Dogecoin’s Critical Support Levels
The recent decline has seen DOGE drop from its December high of $0.48 to a recent low of $0.19, marking a 59% decline. Crypto analysts are divided on whether this signals the beginning of a prolonged bear market or an opportunity for a price reversal. While technical indicators suggest bearish momentum, some on-chain data points to a potential recovery if bulls manage to reclaim lost ground. Ali Martinez, a well-known crypto analyst, highlighted that DOGE’s NUPL indicator suggests that long-term holders are hesitant to sell, despite market uncertainty.
Dogecoin’s Recovery Prospects
Currently trading at $0.21, Dogecoin has dropped 19% since Monday, facing stiff resistance at $0.24—a level that bulls must reclaim to signal the start of an uptrend. If DOGE fails to hold above $0.21, sellers could push prices lower, potentially testing previous support levels. For a recovery rally to gain momentum, Dogecoin needs to stabilize and break above $0.24. However, if selling pressure continues, DOGE could enter a prolonged consolidation phase or even decline further. Bitcoin’s price action will also play a crucial role in determining whether DOGE can recover or sink further. Traders should watch for key signals, including whether bulls can defend the current demand zones and reclaim critical resistance levels.
Long-term Dogecoin investors are uncertain, and future market moves will depend on buyers’ ability to protect key levels and manage selling pressures.
