Dogecoin price entered a mild 1.8% rebound to hit $0.32 on Wednesday, January 29. Derivatives markets trends suggest bull traders placing more aggressive bets, to avert a breakdown below $0.30 gain more ground in the week ahead.
Dogecoin Stabilizes at $0.32 Post D.O.G.E. Confirmation and Deepseek Impact
Dogecoin (DOGE) has stabilized at $0.32 following the confirmation of the D.O.G.E. initiative and the impact of Deepseek, which triggered profit-taking.
Elon Musk’s active involvement in Republican campaigns has helped Dogecoin ride the wave of Trump’s successful run, making it one of the best-performing assets in the top 10 over the past three months. However, as Inauguration Day marked the end of the election cycle, Dogecoin struggled to breach the $0.40 mark despite multiple attempts.
Dogecoin Price Action | DOGEUSDT
DOGE price‘s struggle traction coincided with several bullish factors, including Bitwise’s application for a spot Dogecoin ETF. Yet, the price chart reveals a reversal in Dogecoin’s recovery as selling intensified when Trump officially signed the D.O.G.E. department into law on January 21.
By Tuesday’s close, Dogecoin had plummeted to as low as $0.31, reflecting a 27% loss over the last 10 days.
On Wednesday, however, Dogecoin experienced a rare uptick, rising 1.8% to reach $0.32 as bullish traders moved in to prevent a breakdown below the psychological support level of $0.30.
Bulls deploy $72M Leverage after avoiding $0.30 breakdown
Since rejecting its year-to-date peak of $0.44 on January 18, Dogecoin has posted eight losing sessions in the last ten trading days. The rebound above $0.32 on Wednesday provided temporary relief following heightened volatility.
However, despite the broader market downturn fueled by the DeepSeek vs. OpenAI rivalry, DOGE derivatives data indicates bullish traders remain positioned for further gains after successfully defending the critical $0.30 support level.
Dogecoin Liquidation Map, January 2025 | Source: Coinglass
Coinglass’ liquidation map chart above highlights a surge in leverage deployment, with DOGE long positions exceeding $72.3 million on Wednesday, outpacing short contracts at $64 million.
This 11% imbalance in favor of long traders underscores a shift in sentiment, as bulls aggressively deploy capital to sustain upward momentum.
Historically, when long positions outnumber shorts following an extended bearish phase, it signals a potential bottom formation. If this pattern holds, DOGE could consolidate within the $0.32 to $0.36 range in the days ahead, setting the stage for a potential recovery.
Dogecoin Price Forecast: Weak Volumes Signal Extended Consolidation Below $0.35
Dogecoin price forecast remains under bearish influence after 26.7% decline in 11 days from its $0.44 peak. Currently hovering around $0.32, Bollinger Bands indicate that DOGE is trading near the lower band at $0.306, suggesting an oversold condition.
However, without a considerable increase in market volumes which fell to 547.52 million DOGE on Wednesday, a sustained recovery remains uncertain.
In terms of near-term DOGE price targets, the 20-day moving average at $0.35 acts as the next resistance, with a break above potentially shifting sentiment.
Dogecoin price forecast | DOGEUSDT (Binance)
More so, the MACD histogram shows extended negative bars, confirming downward momentum. The signal and MACD lines continue diverging, reinforcing a bearish outlook unless crossover signals emerge. If bulls fail to reclaim $0.35, continued weakness could trigger a retest of the psychological $0.30 support.
Conversely, a bullish scenario hinges on a decisive move above $0.354 with increased volume, potentially targeting $0.40. Without a catalyst, Dogecoin risks extended consolidation within the $0.30–$0.35 range in the near term.
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