TLDR
- Dogecoin recently dropped over 20% along with other memecoins during last week’s market selloff, but short-term holders have been buying the dip rather than selling.
- On-chain metrics show DOGE is currently in an undervalued zone, with the MVRV Z-Score near historic lows that previously preceded major bull runs in 2017 and 2021.
- The Reserve Risk Indicator remains in the green accumulation zone, showing holder conviction is high while the market has not overheated.
- Dogecoin broke above a multi-year descending resistance line and successfully retested the $0.15-$0.16 support level, which is now acting as a new floor.
- Technical analysis shows DOGE trading around $0.20-$0.21 with key resistance at $0.28-$0.30, while the long-term pattern suggests a potential bullish setup if current support holds.
Dogecoin holders continue to show confidence despite recent price drops. Last week brought a tough period for the memecoin sector. Dogecoin fell over 20% along with other popular memecoins like Shiba Inu and Pepe.
The decline wiped billions off the combined market value of these tokens. Newer memecoins like Bonk and Floki also faced losses as traders reduced their exposure during the broader market weakness.
Despite the selloff, short-term holders stepped in to buy. This buying activity at lower prices shows that some investors view the pullback as an opportunity.
At press time, Dogecoin was stabilizing above key long-term support levels. The price is hovering near local lows, but the foundation appears to be holding.
On-Chain Data Points To Undervalued Territory
The Cumulative Value Days Destroyed chart shows DOGE holding above its long-term value floor. This pattern is similar to periods that came before past rallies.
The Reserve Risk Indicator remains within the green accumulation zone. This means holder conviction stays high while market confidence has not reached overheated levels.
The MVRV Z-Score, which measures when price deviates from fair value, is hovering near historic lows. These levels match readings seen before previous bull runs in 2017 and 2021.
When the MVRV spiked sharply in those years, it marked major market tops. Deep dips below zero often came before strong rebounds.
The current reading shows DOGE remains in an undervalued zone with little speculation left in the market.
Technical Setup Shows Bullish Structure
Analyst EtherNasyonaL recently highlighted a structural retest on the monthly chart. After years of being stuck under a descending resistance line dating back to the 2021 peak, Dogecoin finally broke through.
$DOGE feeling bullish.
After breaking out of both major and minor downtrend lines, Dogecoin retested these areas.
This area also coincides with the resistance line of the cup and handle formation.
The fluctuations seen in short timeframes are not enough to change the overall… https://t.co/cyJNUSFnPW pic.twitter.com/G4WhHA1EUH
— EᴛʜᴇʀNᴀꜱʏᴏɴᴀL 💹🧲 (@EtherNasyonaL) October 14, 2025
The price formed a broad rounding bottom, a classic accumulation pattern. After breaking out, DOGE pulled back to the $0.15-$0.16 zone and tested it as support.
Buyers stepped in to defend that level, confirming it as a new floor. Now trading around $0.20-$0.21, DOGE is consolidating above this support.
The successful retest strengthens the bullish argument. If current levels hold, the setup could lead to another move higher.
Key Price Levels And Market Factors
The $0.15-$0.16 area serves as critical support that needs to hold. The next major resistance sits at $0.28-$0.30, where previous rallies stalled.
Several factors are working in Dogecoin’s favor. The broader crypto market has stabilized, with Bitcoin’s strength typically lifting major altcoins.
On-chain activity has picked up. Developers are exploring tokenization and NFTs on the Dogecoin network.
Retail traders continue to show interest in DOGE. The token still moves on sentiment and social media activity.
The monthly chart shows Dogecoin has shifted from a long downtrend into a more constructive pattern. The breakout and successful retest create conditions that could support higher prices if current support levels hold and market conditions remain favorable.
