Dogecoin Slips Below $0.16, Raising Alarm for Deeper Correction

The outlook for Dogecoin (DOGE) took a bearish turn on April 3, as the meme coin slipped below the crucial $0.16 support level—a price point that had previously underpinned bullish forecasts of a rally toward $0.57. Instead, DOGE is now trading near $0.1558, down almost 3% in the past 24 hours, and technical signals are pointing to further downside.

This breakdown invalidates the ascending triangle formation that many traders had been watching, suggesting that the bullish momentum has weakened and bearish pressure is building.

Eyes on $0.14 as Next Support Zone

With $0.16 now breached, analysts are shifting their focus to lower levels. If selling continues, DOGE could fall to $0.14, and potentially even test deeper support around $0.129.

Meanwhile, former support zones have flipped into resistance, making it harder for bulls to regain control.

Key Levels Now in Play:

Level Role

$0.16 – Immediate resistance (was support)

$0.18 – Next resistance to watch

$0.21 – Bullish breakout zone (currently distant)

$0.143 – First potential support on further decline

$0.129 – Deeper support level

Adding to the bearish narrative, both the 50-EMA and 200-EMA are trending downward on the chart—typically a sign of a weakening trend.

Mixed Signals in the Derivatives Market

Despite the price drop, derivatives activity suggests that traders remain engaged—though uncertain. Futures open interest has dipped over 3%, now sitting at $1.56 billion, indicating reduced leverage and more cautious positioning.

At the same time, 24-hour derivatives volume has jumped 40%, hitting $5.24 billion, which points to heightened speculative interest as traders brace for more volatility.

This combination—shrinking open interest but rising volume—implies that while confidence may be slipping, expectations for sharp price movement remain high. The failed defense of $0.16 could be prompting more aggressive short-term bets on further downside.

Outlook: Trend Weakens, Bears Gain Momentum

The breach of $0.16 marks a notable shift in Dogecoin’s trend, and unless bulls can quickly reclaim this level, the likelihood of a deeper retracement increases.

For now, support near $0.143 and $0.129 may offer temporary stabilization, but the larger picture suggests that the bullish breakout thesis has been derailed—at least in the short term.