Dogecoin (DOGE) price is testing a crucial support region near $0.22, with growing attention on the $0.20 level as a potential turning point. Price action suggests that a retest of $0.20 could establish a stronger base for a rebound, especially if buyers step in to defend this zone. Historically, consolidations around these levels have preceded sharp upward moves, making the coming sessions critical. A decisive hold above $0.20 could set the stage for Dogecoin’s next leg higher, while failure may expose the market to deeper downside risk.
Rising Open Interest Signals Speculation
Despite weakness in spot prices, derivatives data revealed that Dogecoin open interest surged above $3.7 billion, highlighting an influx of speculative positioning. This rise came as trading volumes dropped by more than 40%, a sign 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 $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.
