Dogecoin Price Prediction: Can DOGE Hold $0.06 Support After Recent Selloff?

Dogecoin (DOGE) remained under selling pressure on Wednesday as bearish momentum continued to dominate the meme coin market. DOGE slipped 1.32% over the past 24 hours to trade around $0.0714, extending its weekly decline to nearly 10%. The latest drop pushed the cryptocurrency below the important $0.073 support level, reflecting weakening buying interest as the broader crypto market remained cautious.

The decline followed another rejection near resistance, with Dogecoin falling to a new cycle low of approximately $0.0711. The breakdown below key support encouraged additional selling activity, while trading volume surged 37.83%, signaling stronger participation from bearish traders. DOGE also remained below the $0.08 resistance level, which continues to be a major hurdle for any meaningful recovery.

Broader cryptocurrency market conditions also influenced Dogecoin's price action. Bitcoin rebounded toward the $59,000 mark after briefly falling below $58,000, while Ethereum held above $1,500. XRP also stabilized near $1.00 as investors awaited fresh market catalysts.

Crypto analyst Ali identified the $0.06 level as the most critical long-term support for Dogecoin. According to the analyst, this price zone has historically served as a major accumulation area before previous bullish rallies. With DOGE currently trading close to this region, traders are closely monitoring whether buyers can successfully defend it once again.

Another market analyst, Trader Tardigrade, pointed to a multi-year bullish pennant pattern forming on Dogecoin's higher-timeframe chart. The analyst noted that DOGE recently tested the lower boundary of the pattern, suggesting that years of price compression could eventually lead to a significant breakout if support remains intact.

Market participants are now watching whether Dogecoin can maintain its position above the $0.06 support area. A successful defense could pave the way for a rebound toward higher resistance levels, while a decisive break below this zone may trigger additional downside pressure.

Derivatives data also reflected mixed market sentiment. Trading volume climbed 43% to $1.37 billion, indicating increased short-term activity. However, open interest declined 5.91% to $948.61 million, suggesting that some leveraged positions were closed during the recent decline. Meanwhile, options trading volume fell 9.20%, although options open interest increased 6.59%, signaling cautious positioning as traders await clearer price direction.

On the four-hour chart, Dogecoin continued to trade under pressure after losing the $0.075 support area. Immediate support now sits around $0.0699, with the next downside target near $0.068 if sellers remain in control.

Technical indicators continue to favor bears. The MACD remains below its neutral level, reflecting weak bullish momentum. However, the Chaikin Money Flow (CMF) indicator is hovering near 0.06, suggesting modest capital inflows that could support a short-term bounce.

If buyers successfully defend the $0.069 support zone, Dogecoin could attempt a recovery toward $0.075. A stronger rebound may lift DOGE back to the key $0.080 resistance, while a sustained bullish move could target the $0.085 level, where sellers have previously regained control. Until then, the $0.06 support remains the most important level to watch for Dogecoin's next major price move.