Dogecoin Rise Fading: Analyst Expects Retracement Level to Be 0.213 USD

Dogecoin has entered a critical phase as it consolidates below the resistance level of $0.26, facing increasing pressure after a strong rejection last week. Since reaching a local high on May 10, DOGE has fallen over 18%, retracing some of the gains from the impressive bullish run that started in early April. Bullish speculators have built strong momentum after surpassing the $0.13 level, marking a 100% increase within a month. However, the recent price action suggests that this move may be stalling. The market is currently closely watching to see if Dogecoin can hold its current level or if it will continue to fall. According to top analyst Ali Martinez, the latest rejection has opened the door for the possibility of a return to the $0.213 level — an important area that previously acted as both resistance and support. This level may now act as a magnet attracting price if bullish control continues to wane. While the sentiment remains cautiously bullish, the next move will depend on whether the buyers can regain momentum or if DOGE breaks below its local range. The coming days could determine the medium-term trend of Dogecoin, with the potential for increased volatility. Speculation Rises But DOGE Must Face Significant Challenges The recent correction has caused a shock throughout the cryptocurrency market, with meme coins like Dogecoin being among the hardest-hit assets. As Bitcoin and major altcoins faced a strong pullback, DOGE experienced a significant downturn, falling over 18% since May 10 and wiping out a substantial part of its previous gains. This correction has broken the bullish structure that had formed after DOGE surged over 100% since the beginning of April, following a breakout above the $0.13 mark. Despite the decline, speculation continues to increase around Dogecoin's potential to lead if the market regains bullish momentum. Historically, DOGE has acted as a high beta asset, often outperforming during the euphoric phases of the cycle. With the broader market trying to stabilize, some analysts view DOGE as a potential beneficiary if sentiment shifts to bullish once again. However, the risk still remains. The price is currently hovering just above the key support levels, and failing to maintain this area could trigger a deeper pullback. Martinez shared a technical viewpoint that if the current levels cannot hold, Dogecoin may want to return to the $0.213 level — a significant area that previously acted as a launch pad during the breakout in April.

The upcoming trading sessions are likely to be decisive. The story of the meme coin could regain strength if buyers regain control and push DOGE back to the resistance level of $0.26. However, if the downward momentum increases and DOGE breaks below, this will signal a continuation of the current bearish trend. Currently, all eyes are still focused on this important support area as Dogecoin navigates a high-risk moment in the overall uncertain market conditions. Technical Details: Dogecoin is Facing Important Demand Dogecoin (DOGE) is showing signs of weakness after failing to hold the key resistance near $0.26 earlier this month. The daily chart shows that DOGE is currently trading at $0.221, consolidating just above the 200-day EMA ($0.219) and below the 200-day SMA ($0.269). The range serves as a battleground between the bulls and the sellers, with the recent candlesticks forming tight body structures, signaling hesitation.

The volume has fallen significantly since the breakout in early May, indicating a loss of momentum and trader interest. If DOGE loses the support zone of $0.219–$0.220, the next reasonable support level will be near $0.213, consistent with analysts' concerns about the likelihood of a retest of that level. A drop below this zone could create further bearish pressure towards the $0.19 area. On a positive note, reclaiming the 200-day SMA at $0.269 would be a significant bullish signal, as it would bring DOGE back above the long-term resistance level. However, the current trend supports a cautious stance, especially in the context of overall market instability and weakening sentiment across altcoins. Overall, the chart reflects a pause in the bullish trend and an increased risk of a deeper pullback unless DOGE regains strength above the key moving averages. The coming days may determine whether the consolidation remains intact or turns into a full correction.