Dogecoin price slipped 9% to $0.26 after last week’s ETF-fueled rally, sparking debate over whether the meme coin is primed for recovery or facing deeper losses.

The correction follows heightened optimism around the upcoming Dogecoin ETF launch, which briefly pushed the token as high as $0.31. While the pullback rattled short-term traders, analysts argue that the underlying structure remains intact, with strong support levels and bullish technical signals hinting at a potential rebound.

Key Resistance Levels and Technical Outlook

According to on-chain URPD (UTXO Realized Price Distribution) data, Dogecoin faces dense supply between $0.22 and $0.35. This resistance zone includes clusters of long-term holder activity, most notably at $0.229 and $0.354, which may trigger profit-taking as DOGE approaches those levels.

The most significant resistance barrier ahead of Dogecoin (DOGE) is $0.355, where heavy supply clusters may cap near-term upside. Source: Ali Martinez via X

Crypto market strategist Ali highlighted $0.355 as a key resistance level. “This level is where strong supply pressure could resume,” he explained, underlining the importance of the current trading band.

A 12-hour bull flag pattern has also been spotted on the charts, targeting approximately $0.347 if confirmed. The convergence of technical signals and on-chain data emphasizes that clearing the $0.35–$0.36 range could pave the way for a broader Dogecoin rally.

Market Sentiment and ETF Catalyst

The recent volatility coincides with the anticipation of the delayed Rex-Osprey Dogecoin ETF launch, now expected later this week. Analysts suggest that the ETF could serve as a major driver of capital inflows, similar to Bitcoin and Ethereum ETFs, which fueled record-breaking rallies in their respective markets.

Dogecoin (DOGE) could see major inflows with the launch of its first ETF, potentially driving prices toward $1.40. Source: Bitcoinsensus via X

Crypto commentator Bitcoinconsensus argued that the ETF could trigger a strong wave of institutional interest, noting that the introduction of a Dogecoin ETF would likely attract new capital and open the door for retail investors on Wall Street.

Derivatives Market Shows Strength

Beyond spot trading, Dogecoin is seeing robust activity in derivatives markets. Open interest (OI) in DOGE futures has surged to $6 billion, the highest since December 2024, according to Coinglass data.

The OI-weighted funding rate for Dogecoin (DOGE) currently stands at 0.0089%, indicating a neutral market sentiment. Source: Coinglass

Rising OI with accompanying price action typically reflects bullish conviction, suggesting traders are preparing for further upside rather than closing bets.

Such momentum in derivatives could carry forward volatility in the short term, potentially to the upside if bullish drivers rally together.

Dogecoin Price Prediction 2025 and Beyond

Although there are still short-term risks tied to resistance at $0.355, analysts are optimistic about Dogecoin’s future. Several market watchers see the current correction as healthy and strengthening long-term structural support.

Speculation on whether Dogecoin will reach $1 continues. While timelines vary, some Dogecoin price forecasts for 2025 show prices over $1 being within reach in the case of persistent ETF inflows and supportive market conditions. Some more bullish forecasts even show $7 in the long term, though such goals are extremely speculative.

Looking Ahead: Consolidation or Breakout?

The coming days will be determinative for DOGE. Provided that the support price of $0.26 holds and buyers initiate a move past the resistance price of $0.35, Dogecoin could confirm a breakout and set the stage for a solid advance. But if it cannot maintain these support prices, it could see more bearish pressure according to overall crypto market trends.

Dogecoin was trading at around $0.27, down 3.34% in the last 24 hours at press time. Source: Brave New Coin

For now, Dogecoin price analysis indicates a decisive war zone between bullish pressure and entrenched levels of resistance. Traders and investors will be watching anxiously as the meme token tests if this correction is merely a breather—or the beginning of its next big swing.