Is Dogecoin Heading Toward $0.07 Amid Intensifying Bearish Pressure?
Dogecoin (DOGE) has seen a sharp downturn in recent days, with its price dropping nearly 8% over the past 24 hours. This decline reflects a broader trend of bearish momentum that has gripped the memecoin since it peaked at $0.30. Despite a once-promising rally, DOGE now finds itself testing critical support levels, raising concerns about whether it could fall as low as $0.07.
According to the UTXO Realized Price Distribution for Dogecoin, the $0.18 level remains a pivotal point in its price structure. This level previously acted as a key accumulation zone, where a significant portion of DOGE tokens changed hands. Losing this support has triggered a downward spiral, with the next major accumulation zone sitting at $0.07 — a price where approximately 28.28 billion DOGE were previously acquired, representing around 18% of the circulating supply.
The implications of this data are significant. If bearish sentiment continues to dominate and Dogecoin fails to establish support above the $0.18 range, a drop toward the $0.07 zone becomes more plausible. This level represents the next major demand zone, where historical buying interest may offer support — or at least slow further declines.
Technically, DOGE remains under pressure. On the 4-hour chart, the price has broken beneath the Ichimoku Cloud, signaling a continuation of the bearish trend. The momentum indicators show a clear tilt toward sellers, with increasing sell-side liquidity evident in recent candles. The immediate short-term support was identified near $0.1688, but it remains to be seen whether this level will hold.
To regain bullish momentum, Dogecoin must reclaim the Ichimoku Cloud and close above key resistance levels. Failing to do so could lead to further losses, potentially dragging the price down to levels not seen since early 2023, around $0.15 or even lower.
Despite this, not all signs point to an inevitable collapse. Some derivative traders have started taking long positions on DOGE, suggesting that at least part of the market views the current dip as a temporary retracement rather than the beginning of a prolonged selloff. Supporting this view is structural support on the charts that may prevent a full descent to $0.07, barring a significant market downturn.
However, spot market data paints a different picture. The Spot Taker CVD (Cumulative Volume Delta) shows that sellers have consistently led trade volume since late September, reinforcing the idea that the bearish grip has yet to loosen. Sentiment data further supports this, with both retail and institutional investors displaying a negative outlook. Smart Money sentiment scores are currently hovering around -0.31 and -0.24, indicating continued pessimism from informed market participants.
So, will Dogecoin hit $0.07?
While a drop to $0.07 isn’t guaranteed, it remains a possibility if bearish conditions persist and DOGE fails to reclaim critical resistance levels in the near term. The ongoing sell pressure, coupled with weak sentiment and loss of support at $0.18, supports the case for further downside. However, the presence of structural support zones and renewed interest from derivatives traders could act as a buffer, at least temporarily.
What Factors Could Prevent Dogecoin from Falling to $0.07?
A few key elements could help DOGE avoid a significant drop:
1. Market-Wide Recovery: If Bitcoin or other major cryptocurrencies rally and lift overall market sentiment, Dogecoin could benefit from the rising tide and stabilize or even recover.
2. Strong Buyer Reaction at Support Levels: Historical accumulation zones above $0.07 may attract buyers, especially if the price approaches those areas again. This could create a bounce before DOGE tests deeper lows.
3. Increased Utility or Adoption News: Any announcements around Dogecoin’s adoption for payments or integration into major platforms could help shift sentiment, acting as a catalyst for bullish momentum.
4. Whale Accumulation: Large wallet holders may step in to accumulate DOGE at discounted prices, which can reverse short-term bearish trends and provide much-needed liquidity support.
5. Improved On-Chain Metrics: If on-chain activity such as wallet growth, transaction volume, or network usage shows improvement, it could signal a positive shift in fundamentals.
How Likely Is a Reversal Toward Bullish Territory?
For DOGE to shift back into a bullish phase, it would need to overcome several resistance levels — starting with the Ichimoku Cloud on the 4-hour and daily charts. A decisive breakout above $0.18, followed by confirmation in the $0.20–$0.22 range, would be critical to re-establish upward momentum.
Additionally, sentiment indicators would need to flip back into positive territory. Increasing long interest from both spot and derivatives markets, alongside improving social sentiment, could serve as early signs of a turnaround.
Final Thoughts
While the prospect of Dogecoin falling to $0.07 remains on the table, it is not a certainty. The memecoin is navigating a turbulent phase marked by heightened bearish sentiment and technical breakdowns, yet structural support and underlying demand in historical price zones could offer a cushion. Much will depend on broader market dynamics, investor behavior, and whether DOGE bulls can regroup to defend critical levels.