- Dogecoin is facing a crucial test, with the $0.21 level acting as a key resistance that must be flipped into support for a potential bullish reversal.
- Despite recent bearish trends, signs of accumulation and historical rebounds offer hope for a future recovery.
Dogecoin Slips Below May Lows Amid Bearish Pressure
Dogecoin [DOGE], the original memecoin, has found itself in a bearish grip, losing the explosive 58% rally it posted in early May. In fact, the price recently broke below May’s low on June 20, signaling short-term weakness. However, long-term holders still believe there’s hope—if one key level can be reclaimed.
Traders now view the $0.21 price zone as the critical resistance that must flip into support before confirming any real bullish reversal. Until that happens, the broader sentiment remains cautious.
Accumulation Signals Appear—But Is It Enough?
Despite the downtrend, exchange netflows for Dogecoin have been negative over the past two weeks—a sign that investors may be accumulating rather than dumping. Supporting this view, AMBCrypto suggested recent price action may be part of a larger bullish blueprint reminiscent of past parabolic breakouts.
However, the coin days destroyed (CDD) metric showed large spikes on June 14 and 17, pointing to old coins being moved—typically an indicator of selling pressure. Still, these spikes don’t yet suggest a sustained trend of distribution like in previous bear phases.
The $0.21 Level: Resistance or Launchpad?
A look at Dogecoin cost basis distribution (CBD) heatmap shows significant supply concentration between $0.182 and $0.211. This zone, once a stronghold for DOGE bulls, has now turned into a dense wall of resistance. Many holders who bought during the rally may be waiting to exit at breakeven, potentially stalling any price surge.
Yet, history offers a silver lining. In August-September 2024, DOGE fell below major support levels but bounced back months later. If the recent exchange outflows signal continued accumulation, the next rally could just be a matter of time.
Dogecoin is at a pivotal juncture. If bulls can reclaim and hold $0.21, it may mark the beginning of a broader trend reversal. For now, all eyes are on this key level as DOGE prepares for its next potential move.
