Dogecoin News Update: Will Dogecoin Bounce Back at $0.20 or Drop to $0.18?

Dogecoin (DOGE) is at a crucial crossroads as it attempts to maintain a position above $0.20. Bulls are hoping to drive the price up to challenge resistance at $0.25 and $0.33. According to

, the coin’s open interest has dropped 62% to $1.88 billion from its October high of $5.03 billion, and it is currently testing important support levels amid uncertain market sentiment. Both analysts and traders are monitoring whether DOGE can hold its current support to prevent further declines.

Recent price movements highlight Dogecoin’s fragility. After failing to stay above $0.2035,

slipped below $0.20, breaking through the $0.210 psychological barrier that had served as a short-term support, as noted in the TradingView report. The significant reduction in open interest—which measures leveraged trading activity—points to less speculative trading, which could either indicate a period of consolidation or hint at a deeper pullback. Observers suggest that this drop may reflect short-term traders closing positions, which might reduce volatility in the short run.

Technical experts remain split on DOGE’s prospects. If the price can recover above $0.210, bullish momentum could return, targeting resistance at $0.25 and $0.33. On the other hand, if DOGE fails to reclaim $0.20, it could face renewed selling, with $0.18 as the next key support. “The market is at a turning point,” one trader commented, stressing that “holding the $0.20 level is crucial for bulls to prevent a drop to lower supports.” The overall crypto market’s direction, especially Ethereum’s (ETH) recent move above $4,000, could also affect Dogecoin’s path, since sentiment across blockchains often moves together, according to

.

Institutional involvement paints a mixed picture. The Yahoo analysis also points out that

treasury organizations have increased their dominance over peers, suggesting a shift in capital flows that could indirectly affect altcoins. While does not have the same level of institutional support, its meme status continues to draw retail traders, especially during periods of economic optimism, such as Trump’s Asia trade negotiations mentioned in the Yahoo report.

Dogecoin’s future direction will depend on broader economic trends and on-chain activity. A meaningful recovery would need sustained buying interest in the $0.20–$0.21 area, along with positive signals from the wider market. For now, traders should keep a close eye on the $0.20 mark, as a drop below it could trigger stop-losses and speed up a fall toward $0.18.