Dogecoin: On the Verge of Collapse or a Whale 'Trap'? The Battle to Defend the $0.1 Support Line

▲ Dogecoin (DOGE)

Dogecoin (DOGE) fell 3% in a week, pushing it to defend the $0.10 support line, but large traders continued to bet on a rebound, building millions of dollars worth of long positions.

According to Benzinga on May 27 (local time), Dogecoin has fallen about 3% over the past week, and traders are watching whether the key support line around $0.10 will be defended. This decline was interpreted as a test of a technical support zone amid cooling meme coin investment sentiment.

Crypto chart analyst Ali Martinez analyzed that Dogecoin has been moving within a parallel channel for the past three months and could enter a deeper correction. After recently falling from the top of the channel, the price returned to the middle zone, which has emerged as a key support line, coinciding with the 50-day simple moving average. Martinez believed that if this support line breaks, there could be room for a decline to the bottom of the channel around $0.088.

Another trader, CryptosBatman, diagnosed that Dogecoin is holding around $0.10 while cooling off within a descending channel. He explained that Dogecoin is still trapped below the 200-day exponential moving average, but the tight compression near the top of the channel could lead to a sharp breakout when momentum revives.

The accumulation of long positions by whales showed that expectations for a rebound remained alive even in a bear market. According to Lookonchain data, one whale opened a long position of 27.38 million DOGE, worth approximately $2.75 million, and placed additional buy orders for 33.46 million DOGE, worth approximately $3.31 million. Another address opened a long position of 10.21 million DOGE, worth approximately $1.03 million, and had additional buy orders for 14.66 million DOGE, worth approximately $1.45 million, pending.

Benzinga reported that some large traders are betting on a rebound as Dogecoin tests key technical support zones. The recovery of the $0.10 support line and the 200-day exponential moving average remains a key variable that will determine the short-term trend.

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