Dogecoin Price News: DOGE Could Bounce Back After Hitting Key Support

Dogecoin (DOGE) and meme coins as a whole, for that matter, have been dropping like a rock since September last year and have failed to capitalize on the latest rallies.

Nonetheless, DOGE’s year-to-date (YTD) losses have been much lower compared to top altcoins like Solana (SOL) and Ethereum (ETH).

This meme coin has booked a 33% decline, while the former have lost nearly half of their value in 2026.

Meanwhile, the entire category has outperformed its top token by around 11%, as the market cap of all meme coins, as tracked by CoinMarketCap, has retreated by 22% on a YTD basis.

In fact, DOGE’s performance has been quite similar to Bitcoin (BTC), even though the former is considered an “internet joke” while the latter is touted as “digital gold.”

The irony of it all is just mind-blowing. In any case, the weekly price action may explain why DOGE has experienced milder losses compared to its high-profile peers.

No Short Squeeze For DOGE as Bearish Sentiment Persists

In our latest Dogecoin price prediction, we mentioned that this meme coin could explode to $0.29 if bulls managed to push the price past the $0.115 resistance.

That was our “big squeeze” territory for DOGE, as the volume of stop orders above that level was likely high.

However, that did not happen, and we ended up rejecting a move above that mark that set off a strong drop to $0.09 and, ultimately, to DOGE’s current level at $0.08.

Dogecoin Could Bounce Strongly Off $0.075 Again, But It Needs a Catalyst

We are now approaching what was a strong launchpad for this token in January 2024. Back then, the launch of the first spot exchange-traded fund (ETF) for Bitcoin was the catalyst for that rally.

Bulls managed to push DOGE from $0.075 to $0.225 in just three months, meaning a 200% gain in a relatively short period. However, the macroeconomic landscape is quite different now.

The latest leadership change at the Federal Reserve has failed to yield the expected outcome, as Kevin Warsh stepped in with hawkish comments instead of supporting another interest rate cut, which was the market’s baseline scenario for this year.

Now, analysts expect a rate increase as soon as September, and a not-so-small group believes that the Fed could push the federal funds rate by as much as 50 basis points.

This is a strong headwind for risky assets like DOGE, and we expect that the selling pressure will increase down the road as market participants may think that they will be able to grab the token at a much lower price a few months from now.

Drop to $0.058 In Sight if This Key Support Falters

Looking at the charts, that $0.075 is the key support to watch this week. If we break below it, the downside risk for DOGE would be around 20%, as the token could fall to $0.058 in just a few weeks.

On the other hand, we may see DOGE consolidation between $0.075 and $0.09 for a while before the market makes its next big move.

It is reasonable to hold a bearish outlook as investors could decide to play catch-up with ETH and SOL, in which case the top meme coin has every chance to retest those October 2023 lows.

In the near term, the outlook is bleak. However, we continue to believe that we could be either near or at the current cycle bottom. What is currently absent is a strong catalyst that prompts a U-turn in market sentiment and squeezes bears out of their positions for good.