Dogecoin Price Rebounds From $0.08 Lows After $1 Billion Market Cap Drop

Dogecoin has staged a recovery after touching its lowest levels since August 2024. The popular memecoin briefly dipped to $0.08 before climbing back to $0.093, offering relief to investors who watched the token breach critical support zones. At the time of writing, the digital asset is trading at $0.09872, up 7.63% over the past 24 hours.

Selling Pressure Dominates Trading Activity

Market data reveals intense selling activity across both spot and futures markets. Between February 5th and 6th, Dogecoin recorded 3.1 billion in sell volume compared to 2.6 billion in buy volume. This created a negative delta of 400 million, indicating sellers maintained control throughout the period.

The negative buy-sell spread typically points to sustained downward pressure. When selling activity outpaces buying for extended periods, prices often continue their descent. This pattern played out as Dogecoin tested lower support levels.

Futures markets experienced similar dynamics. Traders rapidly closed positions to reduce risk exposure and decrease leverage. Data from CoinGlass showed $2.22 billion in futures outflows against $2.18 billion in inflows. The memecoin's futures netflow stood at negative $39 million at press time, up from the previous negative $88 million.

Open interest decreased by 16.7% to $986.39 million. This decline reflects reduced market leverage, a development many analysts interpret as bearish. When traders exit leveraged positions en masse, it often suggests waning confidence in near-term price appreciation.

Technical Indicators Point to Oversold Conditions

The rebound from $0.08 to current levels suggests buyers stepped in at critical support. However, technical indicators paint a complex picture for the memecoin's near-term trajectory.

The Stochastic RSI dropped to 13.70, entering deeply oversold territory. Such extreme readings indicate heavy selling pressure but can also signal potential reversal points. When momentum indicators reach these levels, markets sometimes experience sharp bounces as sellers exhaust their positions.

Dogecoin trades below both short-term and long-term exponential moving averages. The price remains under the EMA20, positioned at $0.11, and the EMA50. Trading below these key averages confirms the prevailing downtrend remains intact despite the recent recovery from lows.

The memecoin faces resistance at multiple levels above current prices. Bulls must overcome the $0.095 level before challenging the psychological $0.10 barrier. Breaking above these points would mark the first step toward a sustainable recovery.