Dogecoin Takes a Short Breather — But Is Another Rally on the Horizon?

After a 19% price dip, analysts believe Dogecoin (DOGE) might just be catching its breath before the next leg up. This retracement created an appealing buying opportunity, especially for retail investors — as seen in the spike in new blockchain addresses during the decline.

Market Remains Bullish — But There’s a Catch 🔹 Over 75% of DOGE trading accounts are holding long positions, according to recent trader data. This strong bullish majority has held steady over the past few weeks. 🔹 However, the low trading volume during the recent price rally raises a red flag. Without sufficient buying power, the price may struggle to sustain its upward momentum — increasing the likelihood of a deeper correction.

Technical View: Short-Term Volatility, Long-Term Optimism On the daily chart, DOGE still maintains a bullish structure, though the recent surge to $0.26 was followed by notable profit-taking activity. This triggered a drop in the On-Balance Volume (OBV) indicator, which is now below its February lows. Breaking those lows in early May was seen as a strong bullish signal — but the shine has faded slightly since. 📊 The RSI (Relative Strength Index) remains above 50, signaling continued bullish momentum.

Key Support Holds at Fibonacci Levels Based on a Fibonacci retracement drawn from $0.164 to $0.26, DOGE has found support at the 50% level of $0.212.

🟢 On the 4-hour chart, this support level held firm and was followed by a bullish market structure break. A move above the recent lower high at $0.229 (marked in green) flipped the short-term trend in favor of buyers. However, it’s worth noting that OBV has not yet reclaimed its May 16 high, indicating that this structural shift is currently backed by weak buying volume.

What Does Market Sentiment Say? 📉 According to Coinglass data, long and short positions are almost evenly split in terms of volume. This suggests a neutral market sentiment in the short term, with neither bulls nor bears in clear control. That said, long positions still dominate overall — 75% of DOGE accounts are betting on a price increase, and that trend has remained consistent for the past month.

Conclusion: A Pause Before the Next Move? While Dogecoin is currently consolidating, its broader trend remains bullish. The market structure is intact, RSI supports upward momentum, and the dominance of long positions indicates that investor confidence is still strong. 📉 However, lackluster buying volume remains a concern — if volume doesn't pick up, DOGE could revisit the $0.212 support, or even dip lower. 🔍 For traders, the key is to monitor not just price levels but also volume dynamics and reactions to key support zones.

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