Dogecoin (DOGE) Price: Testing Key $0.20 Support After 25% Correction Maisie Morrison | usagoldmines.com

TLDR

• Dogecoin price has pulled back 25% since reaching $0.30 in mid-September
• DOGE is currently testing crucial support at $0.20-$0.22 level
• Technical indicators show bullish divergence on the RSI
• The $0.20 level represents a major accumulation zone based on Realized Price Distribution
• If support holds, analysts project a potential 30% rebound to $0.27-$0.29 range

Dogecoin (DOGE) is approaching a critical juncture after cooling off from its mid-September rally. The popular meme cryptocurrency has retreated about 25% from its recent high of $0.30 reached on September 13, bringing it back to test key support levels.

This pullback has positioned DOGE at what analysts describe as a “make-or-break” level that could determine its next major move. Technical data suggests this support zone might serve as a springboard for another upward push.

The recent price action comes after a strong performance in the first half of September. DOGE had been trending upward since June, gaining approximately 60% over the past three months before the current correction began.

From a technical standpoint, Dogecoin has respected a rising trendline dating back to April. This trendline has repeatedly acted as support, triggering multiple rallies throughout 2025.

What makes the current situation particularly interesting is the confluence of multiple support factors converging in the same area. The $0.20-$0.22 price band features not only the rising trendline but also horizontal support and the 200-day exponential moving average (EMA).

Technical Analysis Points to Possible Rebound

The 200-day EMA is especially important as it gives more weight to recent price action and helps identify the market’s prevailing direction. As long as DOGE maintains position above this moving average, the broader uptrend remains intact.

Another encouraging signal comes from the Relative Strength Index (RSI), which stood at 43 at press time. While readings below 50 typically indicate weakening bullish momentum, analysts have spotted a bullish divergence forming.

This divergence occurs when the price continues making lower lows while the RSI stops declining and begins curling upward. Such patterns often signal that selling pressure is exhausting, especially when they form at major support levels like the current $0.22 zone.

Historical data shows that previous rebounds from the rising trendline support have produced rallies of 30-40%. If this pattern repeats, DOGE could target the $0.27-$0.29 range, representing a 30% gain from current levels.

However, traders should watch for a decisive break below the $0.20-$0.22 band, which would likely trigger a deeper correction toward $0.18 in the near term.

On-Chain Data Shows Strong Holder Presence

Analyst Ali Martinez has highlighted $0.20 as Dogecoin’s most important support level based on Realized Price Distribution metrics. This on-chain data shows where coins last moved, revealing where large groups of holders likely established positions.

Martinez points to a massive cluster of historical transactions around the $0.20 price point, suggesting many current holders bought at this level. This concentration of buyers often creates natural support as these holders typically resist selling at a loss.

When price revisits such high-ownership zones, two market dynamics frequently emerge. First, holders who bought at these levels are less likely to panic-sell below their entry point. Second, new buyers often step in, seeing value at prices where previous participants were active.

Some traders have noted similarities between current market conditions and patterns that preceded previous major rallies. DOGE has demonstrated a tendency to move through long accumulation phases before explosive breakouts that catch many by surprise.

The meme coin also benefits from a passionate community that has weathered multiple market cycles. This dedicated following provides a foundation of support that many other cryptocurrencies lack.

Dogecoin was trading at $0.22 at the time of writing, with all eyes on whether it can defend the critical support zone or if further downside will materialize in the coming days.

The post Dogecoin (DOGE) Price: Testing Key $0.20 Support After 25% Correction appeared first on Blockonomi.

This articles is written by : Nermeen Nabil Khear Abdelmalak

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