Dogecoin was trading within a local supply zone dating back to late November, a setup that could trigger a pullback. Dogecoin fell below the $0.13 support level in December, a trough last seen in April before rebounding. January saw DOGE prices move higher briefly, but the broader trend remained intact. The OBV and CMF indicated that selling pressure in recent weeks had begun to ease.
Sustained buying demand is needed to support Dogecoin’s uptrend. The DMI signaled a continued downtrend, but momentum was relaxing. A month later, DOGE had rallied above the previous lower high near $0.205, set in March. By mid-May, the $0.250-$0.265 supply zone from February was revisited, even as CMF stayed below +0.05.
This highlights how memecoin rallies tend to be quick, requiring traders to adjust their bias rapidly to capitalize on impulse moves. Investors cannot expect Dogecoin to set new all-time highs or reach $1 in the coming months. The more likely scenario is a rally to local highs around $0.21 and into the $0.275-$0.290 supply zones. The sellers could take control afterward, especially if Bitcoin momentum falters, setting a macro lower high as part of a bear market.
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