In recent days, Dogecoin (DOGE) has been testing the support level near $0.22, with particular focus on $0.20 as a potential turning point.
Rising Open Interest Signals Speculation
Despite weakness in spot prices, derivatives data revealed that Dogecoin's open interest surged above $3.7 billion, indicating an influx of speculative positioning. This rise came as trading volumes dropped by more than 40%, signaling that fewer market participants were actively buying and selling on spot exchanges, while leveraged traders increased exposure. Such a divergence often precedes sharp swings, with DOGE sitting at the center of growing volatility expectations.
Bearish Market Structure in Play
From a technical perspective, Dogecoin has broken below the $0.2295 support, slipping under $0.2320 and the 100-hour moving average. This signals a weakening market structure, with sellers firmly in control in the near term. On-chain analytics add weight to the bearish case, as realized profit and loss data revealed significant capitulation, the largest in over a year. Combined with a long-to-short ratio falling under 0.8, the market now shows a heavy skew toward downside positioning.
Can Dogecoin Price Rebound From $0.20?
The $0.21 support zone has become the most critical area to monitor. If bulls manage to defend this level, a rebound could pave the way toward $0.26 and potentially $0.30, aligning with previous resistance points. Historically, Dogecoin has staged meaningful rallies after consolidating at this very zone, making it a level of interest not only for traders but also for long-term holders. However, failure to maintain support would likely extend the correction, exposing DOGE to deeper retracements toward $0.19.
The situation in the Dogecoin market remains under pressure, and the upcoming actions at the $0.20 support level will be critical in determining price direction in the near term.
