Dogecoin Eyes Recovery After Extended Sell-Off
Dogecoin (DOGE) , the original meme coin, has seen significant price swings over the past few months. After reaching a strong high, DOGE has been in a steady downtrend, leaving traders wondering if the worst is over or if more downside is ahead. With meme coins remaining a speculative favorite among retail investors, understanding DOGE’s current technical setup is key to predicting its next move.
In this analysis, we’ll take a closer look at Dogecoin’s support and resistance levels , technical indicators, and possible price action in the coming weeks.
Dogecoin (DOGE) has seen a steady decline after a significant bull run, with price action showing signs of weakening momentum. The latest daily chart suggests that Dogecoin price is trading at around $0.17, struggling to maintain upward traction. The broader market correction, combined with fading retail enthusiasm, has contributed to this bearish sentiment.
The recent price action suggests a consolidation phase, with DOGE price attempting to find support. The cryptocurrency has been forming lower highs, indicating a gradual loss of buying pressure. However, is this a temporary cooldown, or is DOGE headed for further decline?
A closer look at the Relative Strength Index (RSI) reveals that DOGE is hovering around 32.29 , indicating oversold conditions. This could mean that a relief bounce is possible, but the overall trend remains weak. If the RSI drops further below 30, it could signal extreme overselling and a potential short-term recovery.
The Moving Average Convergence Divergence (MACD) indicator also supports the bearish outlook. The MACD line remains below the signal line, showing that downward momentum is still in play. However, the histogram is beginning to show slight signs of weakening bearish pressure, suggesting that a reversal might be on the horizon if buyers step in.
One of the most important levels to watch for DOGE price is the $0.16 support zone. Historically, this level has served as a strong buying zone where bulls attempt to regain control. A break below this level could see Dogecoin retracing to $0.14 or lower, potentially testing new yearly lows.
On the upside, the key resistance level stands at $0.20. A breakout above this level could reignite bullish sentiment and push Dogecoin price towards $0.25, where more resistance is expected. For this to happen, Dogecoin would need a surge in trading volume and a broader market recovery.
Dogecoin’s future price action will largely depend on broader crypto market trends and potential catalysts such as increased adoption or Elon Musk’s influence. While DOGE has historically been a meme-driven asset, its integration into payment systems and community-driven initiatives could play a key role in determining its long-term price direction.
As of now, DOGE is in a make-or-break situation. If buyers defend the $0.16 support, we could see a reversal towards $0.20. However, a failure to hold this level could lead to further downside. Traders should keep an eye on volume spikes and momentum indicators to gauge the next potential move.
Dogecoin is currently at a crossroads, with key support at $0.16 and resistance at $0.20. The RSI suggests a potential oversold bounce, but the overall trend remains weak unless bulls regain control. Investors should monitor market sentiment closely, as any sudden surge in buying pressure could push DOGE toward a breakout.
Changpeng Zhao calls for AI agents to focus on utility instead of launching tokens
Changpeng Zhao echoed a growing sentiment among analysts, urging AI projects to take payments in existing tokens and only launch their own if they achieve significant scale.
In his recent post on X , Changpeng Zhao expressed an “unpopular opinion,” stating that not every AI agent needs its own token as agents can collect payments in existing tokens for their services. “Launch a coin only if you have scale. Focus on utility, not tokens,” he said.
According to CoinMarketCap , the total market cap of AI & Big data tokens has declined by approximately 22% in the past 30 days, currently at $27.44 billion. Many AI agents are down by double digits in the last month, with Virtuals Protocol ( VIRTUALS ) declining by 42%, Render ( RENDER ) by 30%, and Near Protocol ( NEAR ) by 26%.
However, these declines are likely driven by the broader crypto market downturn rather than a lack of utility, with macroeconomic factors—most notably Trump’s tariffs—playing a key role. The uncertainty over potential U.S. expansions of existing restrictions recently sent stocks of AI chipmaker companies tumbling, with Nvidia’s stock taking a significant 6% decline, adding further pressure on AI-related crypto tokens.
Although the decline in AI tokens’ market cap is driven primarily by macro factors, other experts echoed Zhao’s sentiment about the lack of utility of AI tokens.
For example, Coinbase research analyst David Han noted that the recent price rallies in AI coins were driven mainly by hype rather than actual utility. He attributed the hype around these tokens to the broader focus on the AI industry.
On-chain sleuth ZachXBT also claimed that 99% of AI cryptos are scams, saying that while memecoins acknowledge their lack of inherent value, AI projects often market their tokens as if they had utility.
“Do you want to be right or do you want to make money” 99% of it is a scam and the AI agent wrapper grifts are probably worse than other past trends tbh. bc at least meme coins promise nothing whereas AI coins try to larp as much as possible to appear legit to unsuspecting…