In the volatile world of cryptocurrency, Dogecoin (DOGE) has once again captured the attention of investors and traders. Over the past two days, DOGE has demonstrated both its resilience and vulnerability, swinging through a notable 5% range. The meme-inspired coin initially dipped to $0.251, only to claw its way back up to $0.264 before succumbing to a sharp selloff. This erratic movement has left traders pondering the possibilities and pondering what lies ahead.
Navigating the Rollercoaster
Dogecoin’s recent price action has been nothing short of a rollercoaster ride. It began on October 2 at 4:00 AM, with DOGE trading between $0.251 and $0.264 until the early hours of October 3. Despite the ups and downs, DOGE managed to post a 2.7% net gain during this period. This performance can be attributed to a series of intraday corrections and recoveries, which kept traders on their toes.
Institutional desks played a significant role in driving the flow of trades, with speculation surrounding SBI and Exchange-Traded Funds (ETFs) fueling broader interest in DOGE. Analysts have pointed to an ascending megaphone pattern and hidden bullish divergence as potential indicators of a continued upward trend. However, the coin’s short-term sell pressure remains a cause for concern.
The Selloff and Rebound
The drama unfolded at 2:00 PM when DOGE dipped to $0.251, sparking fears of a further decline. Yet, by 9:00 PM, the coin had rebounded to $0.264, showcasing its resilience. However, a staggering 33 million-volume selloff at 3:55 AM on October 3 punctured DOGE’s momentum, leaving it consolidating around $0.261.
During the downturn, selloff volumes peaked at an astonishing 666 million tokens, highlighting the intensity of the sell pressure. Conversely, the rebound phase saw 414 million tokens traded, indicating that buyers were eager to step in at the $0.251–$0.253 support level. Resistance, however, proved to be a formidable barrier, consolidating between $0.262 and $0.264.
Technical Insights
From a technical perspective, key support remains firmly anchored at $0.251–$0.253, a zone where buyers have consistently shown their willingness to enter the market. Meanwhile, resistance has solidified at $0.262–$0.264, creating rejection pressure that has capped DOGE’s upward momentum.
The structure of DOGE’s price chart reveals both resilience and fragility. While late-session liquidation prints broke short-term support, broader patterns, including the ascending megaphone and bullish divergence on momentum indicators, suggest that potential upside remains. If buyers can reassert themselves above $0.262, there’s a possibility of continuation toward $0.34, offering a glimmer of hope for bullish traders.
What Traders Are Watching
As the trading day unfolds, the key question on everyone’s mind is whether DOGE can stabilize above $0.260 after the late-session liquidation. If selling persists into U.S. trading hours, there may be a retest of the $0.251–$0.253 support level, which has proven to be a reliable floor thus far.
Traders are also keenly watching for confirmation of the bullish divergence and megaphone breakout setups. If these patterns hold true, they could pave the way for upside targets approaching $0.34. Additionally, ETF speculation flows could re-anchor meme-coin bids across DOGE and its fellow memetic counterpart, Shiba Inu (SHIB).
A Balanced Perspective
While the technical indicators suggest a potential upside, it’s important to maintain a balanced perspective. The cryptocurrency market is notorious for its volatility, and DOGE’s recent price action serves as a reminder of this reality. Institutional liquidation flows have the power to sway the market, and traders must remain vigilant in their strategies.
In conclusion, Dogecoin’s journey through the past 48 hours has been a testament to its resilience and the challenges it faces. As traders navigate this ever-changing landscape, they must weigh the potential for further gains against the risks of continued sell pressure. Whether DOGE can break through its current resistance and climb toward $0.34 remains to be seen, but one thing is certain: the world of cryptocurrency is anything but predictable.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
