Dogecoin’s (DOGE-USD) overnight plunge shook the market, but some traders are already looking for signs of recovery. As the memecoin consolidated near $0.25 after sliding from $0.27, Binance founder Changpeng Zhao (CZ) weighed in with his trademark metaphor:
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“Dips are important for establishing support levels, which are like foundations of a house. 🤷♂️”
His words landed just as DOGE was battling to hold the $0.25 floor. The selloff came on record volume of 2.15 billion tokens, far outpacing the 24-hour average of 344.8 million. The surge in activity signals that big money was likely behind the liquidation wave.
The $0.25 Price Is Key
DOGE’s sudden fall left traders staring at a narrow channel between support at $0.25 and resistance at $0.27. Analysts flagged a “1-2 pattern” that historically precedes breakouts, with upside targets at $0.28 and $0.30.
If buyers step back in, the setup could be the springboard for the next rally. But if $0.25 gives way, the coin risks tumbling toward $0.23. For now, the consolidation zone is acting like the foundation CZ referred to, either a base for higher moves or the start of deeper cracks.
Liquidations Wipe Out Traders Across the Market
DOGE’s drop was part of a broader flush. More than $1.5 billion in leveraged longs were liquidated across crypto on Monday, the largest wipeout in months. Ethereum fell as much as 9% to $4,075, while Bitcoin briefly slipped below $112,000.
DOGE was hit hardest, falling over 10% before clawing back above $0.25. More than 407,000 traders were liquidated in 24 hours, a number that shows just how one-sided the market had become. Big clearouts like this often leave space for a cleaner rally once the dust settles.
Traders Eye the $0.28–$0.30 Breakout Zone
For DOGE bulls, the next real test is a breakout above $0.28–$0.30. This level would mark a reversal of the overnight losses and confirm the bullish pattern forming on the charts.
Recovery attempts have already shown signs of accumulation, with volume spikes at key moments. If momentum builds, DOGE could reclaim higher ground quickly. If not, bears will see $0.25 as unfinished business.
In markets as volatile as crypto, foundations matter. And for now, Dogecoin is testing just how strong this one really is.
At the time of writing, Dogecoin is sitting at $0.2380.
