Dogecoin Holds Key Technical Level but Momentum Raises Questions

Dogecoin (DOGE) has been experiencing a recent price increase, with the cryptocurrency holding onto a key technical level. However, despite this support, analysts are warning that the momentum behind the move is weakening.

The current trend line was broken above by DOGE, but since then, the price has pulled back and retested this level six times without breaking through it decisively. This repeated testing can sometimes strengthen a breakout level, but follow-through has been limited in this case.

The derivatives market is also reflecting hesitation rather than conviction in the recent price action. Open interest in DOGE futures has remained relatively flat, and previous rallies were often accompanied by sharp increases in leverage, which is not currently visible. The lack of sustained growth in leverage makes it harder to maintain upside continuation.