Dogecoin Struggles at $0.21 Resistance as Market Waits for Breakout

Dogecoin remains at a major resistance point at the $0.21 price point, presenting a crucial decision point for traders and investors. The cryptocurrency has been trading between $0.19 and $0.21 in October and has failed to regain the high it reached at the beginning of the month.

Source: CoinMarketCap

On October 22, 2025, the digital asset was trading at around $0.19, with a trading range of $0.191 to $0.205. Dogecoin is currently worth almost $29 billion, which guarantees its presence in the list of the largest cryptocurrencies by market capitalization, with a circulating supply of 151 billion coins.

Supply Wall Creates Selling Pressure

On-chain data have shown the reason why the number 0.21 poses such a significant obstacle. This price bought over 10 billion DOGE tokens, which analysts refer to as a supply wall. At this price, a significant number of holders will seek to sell out at breakeven, overwhelming the market with sell orders.

Source: X

This monopoly of supply has had several unsuccessful attempts to raise prices higher. Every attempt to move towards $0.21 is met with strong resistance, and the prices are brought down. The trend adheres to typical investor psychology in cryptocurrency markets, where traders rush to withdraw their investments when the price reaches the level at which they initially invested in the assets.

According to market analysts, the level of support they focus on is $0.194. A fall below this level may prompt quicker selling, up to $0.16 or even $ 0.13. On the other hand, a long-term rise above $0.21 will drive Dogecoin to 0.24-0.26, where it was at the beginning of October.

Institutional Interest Grows Despite Volatility

Grayscale's launch of a Dogecoin Trust earlier this year has provided institutional investors with regulated access to the cryptocurrency. While the trust does not offer the same benefits as a full exchange-traded fund, it represents progress in legitimizing Dogecoin beyond its origins as a meme-based token.

The coin continues to attract merchant adoption as a payment method. However, its uncapped supply remains a concern. Mining operations add approximately 5 billion DOGE annually, creating constant selling pressure that must be absorbed by demand.

Trading volumes across the broader cryptocurrency market have declined recently, making it harder to overcome resistance levels. When liquidity decreases, coins like Dogecoin face steeper challenges at key price points. Large holders, commonly referred to as whales, significantly influence price action at these levels through their substantial transactions.

Technical analysts view the current range as unsustainable. The coin must either break above $0.21 or fall below $0.194 to establish a new trend. Volume will be critical in confirming any breakout. Strong buying volume accompanying a move above resistance would validate bullish momentum, while weak volume could indicate another false breakout.

Source: X

When Grayscale introduced the Dogecoin Trust earlier this year, it provided institutional investors with regulated access to the cryptocurrency. Although the trust is not providing the same level of value as a full exchange-traded fund, it is a step toward making Dogecoin more legitimate than a meme-based coin.

Merchants are still embracing the coin as a means of payment. Nevertheless, its unlimited supply is still an issue. Mining activities contribute approximately 5 billion DOGE every year, which forms continuous pressure on sales that must be compensated for by increased demand.

Volumes in the larger cryptocurrency market have decreased recently, making it challenging to overcome the resistance levels. Coins, such as Dogecoin, experience stiffer challenges at significant price levels when liquidity is reduced. These large holders are often referred to as whales and are capable of significantly influencing the price action at this level due to their substantial transactions.

Technical analysts consider that the current range is unsustainable. It will need to break above 0.21 or drop below 0.194 to establish a new trend. Volume will be essential in any breakout confirmation. Bullish momentum should be confirmed when purchasing volume accompanies a break above resistance, and weak volume may indicate a further false breakout.