Dogecoin (DOGE) Price: Breaks Below $0.20 Support Level

The popular cryptocurrency Dogecoin has experienced a notable price decline, dropping below the $0.20 mark and currently trading at $0.185. This represents a 10% decrease in the last 24 hours and extends to a more substantial 26% drop over the past seven days.

The price movement comes at a time when the U.S. Securities and Exchange Commission (SEC) has provided clarity on the regulatory status of meme coins. The SEC has declared that meme coins, including Dogecoin, do not fall under the category of securities as defined by federal securities laws.

This regulatory clarity has had an interesting effect on the potential for a Dogecoin ETF. According to data from Polymarket, the probability of a DOGE ETF receiving approval by July 31 has reached record levels. An ETF approval could potentially drive the price toward higher levels.

$DOGE is showing strong bullish potential as it approaches a key reversal zone.

Price has reached the $0.16896 support, aligning with a potential Cup & Handle formation.

A breakout above $0.29124 could confirm a rally toward new highs.

Long-term target sits near $0.50… pic.twitter.com/nphcqoJzhA

— Rose Premium Signals (@VipRoseTr) February 26, 2025

However, the current market conditions continue to present challenges for DOGE holders. The 30-day Market Value to Realized Value (MVRV) ratio has entered negative territory, indicating that traders are currently facing unrealized losses of approximately 20%.

Technical Analysis

Technical indicators are showing concerning signals for the short term. The Relative Strength Index (RSI) on the daily chart has dropped to 23, reaching levels not seen since the banking crisis of March 2023, when the collapse of Silicon Valley Bank and Signature Banks triggered market-wide panic.

The price decline has broken through several key support levels, raising questions about potential further downside. Market analysts are now watching the $0.12 level as a crucial support zone, with some suggesting that a break below this point could lead to a test of lower levels.

Dogecoin Price on CoinGecko

Trading volume has increased during this period of price decline, indicating strong selling pressure across the market. This increased activity suggests that traders are actively participating in the market movements, though primarily on the selling side.

A technical pattern that has caught the attention of analysts is the potential formation of a Cup & Handle pattern near the $0.16896 level. This pattern, if confirmed, could indicate a potential reversal point for the price action.

The broader cryptocurrency market conditions continue to influence Dogecoin’s price action. The current state of market fear has contributed to the selling pressure across various digital assets, including DOGE.

Despite the current bearish trend, the odds of a Dogecoin ETF approval have continued to rise. This development represents a potential positive catalyst for future price action, though current market conditions appear to be overshadowing this factor.

The MVRV ratio’s negative reading has historically served as an indicator of potential buying opportunities. However, the current market sentiment suggests that traders are hesitant to establish new positions.

The daily chart analysis shows that the price action has been consistently trending downward, breaking through previous support levels. This technical breakdown has contributed to the increased selling pressure.

The RSI’s oversold reading of 23 typically suggests that an asset is oversold and due for a potential bounce. However, in the current market environment, oversold conditions have not yet triggered a reversal.

Current data shows that many long-term holders continue to maintain their positions despite the price decline. This behavior suggests a level of confidence in the asset’s long-term prospects, even amid short-term price pressure.

The potential support level at $0.16896 is being closely watched by traders and analysts. This price point could prove crucial in determining the next major move for Dogecoin’s price action.