Dogecoin: Breakout attempts fail, short sellers regain control – What’s next?
Traders looking to buy would want a reclaim of $0.150 to signal strength from the bullish side.
On the 13th of January, Dogecoin [DOGE] bulls forced a short-term rally to $0.15.
On that day alone, the leading memecoin had rallied by 8.8%, challenging the local supply zone where a breakout attempt failed in the first week of the month.
The second try was a failure too, and DOGE prices have been falling since then. Bitcoin’s [BTC] wobble in the early hours of Monday sent Dogecoin prices further south.
CoinMarketCap data showed that the past 24 hours saw the memecoin sector shed 6.66% of its total market cap. Traders faced $35.42 million in liquidations in the past 24 hours, with $33.69 million being long positions.
Dogecoin slips below key long-term support
The $0.150 supply zone was just below the key swing high from November at $0.156. Breaching it would have flipped the swing structure bullishly, but it was not to be.
Though the CMF was above +0.05 at the time of writing, the OBV signaled the seller dominance since October has not let up. Moreover, the $0.129 low from April 2025 was ceded to bears yet again.
It showed the severe selling pressure on Dogecoin. Each bounce is a profit-taking opportunity for underwater investors.
Arguing the bullish DOGE case
This was a tough argument to make. In 2025, Dogecoin shed 62.8%, measured from the year’s open to its close.
A recent AMBCrypto report highlighted the lack of conviction from smart money, evidenced by the 500 million DOGE deposit to Binance.
Traders’ call to action – Sell a bounce
There were sizeable imbalances overhead on the hourly chart. The one at $0.137 coincided with the $0.136-$0.140 zone, where the memecoin consolidated over the past few days before plummeting lower.
Traders can use a retest of $0.140 to go short if they see a lower timeframe trend shift to act as an early signal of a bearish reversal. Alternatively, the $0.150 was another supply zone to sell at.
Traders looking to buy would want a reclaim of $0.150 to signal strength from the bullish side.
Final Thoughts
- The Dogecoin price prediction was bearish for the rest of the month. A price bounce toward $0.14-$0.15 is possible before another move lower.
- A Bitcoin resurgence is necessary to shift sentiment and encourage capital flows to DOGE, which have been weak after the first week of January.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
