Dogecoin at a Crossroads: Are Bulls Ready for a New Leap?

Analysis of the behavior of short-term investors gives the first hints. The Net Unrealized Profit/Loss (NUPL) indicator, which measures the profitability of recently opened positions (over the past 155 days), has dropped sharply from 0.24 to 0.06 in just eight days. This suggests that new market participants have either locked in a small profit or ended up with a loss. Such “capitulation” on their part often precedes a trend reversal, when only more convinced holders remain.

Additional support for the market is provided by the cost zone around $0.21, where almost 10 billion DOGE are concentrated. Historically, such levels serve as a kind of “shield” from further decline, since large holders do not want to let the price go below the point of their investments.

In technical terms, the chart shows a hidden bullish divergence between the DOGE price and the RSI (relative strength index). The price is forming higher lows, while the RSI points to a decrease - this may indicate the accumulation of positions and a decrease in pressure from sellers. This type of divergence often foreshadows an upward breakout after a period of consolidation.

The key level for DOGE is now $0.21 - if the price holds above it and manages to overcome the resistance around $0.25, the next target will be $0.28. However, in the event of a downward breakout, a fall to $0.19 or even $0.17 is possible, which may temporarily cancel the optimistic scenario.

Thus, the Dogecoin market is at an important stage. Panic among new investors is fading, strong players remain, and technical analysis points to a potential reversal. If the selling pressure finally eases, DOGE may return to growth in the near future.