Dogecoin Jumps on U.S. Inflation Slowdown, Will It Break $0.10 Resistance and Start a Rally?

▲ Dogecoin (DOGE)/ChatGPT-generated image ©

As weaker-than-expected U.S. inflation data sparked a relief rally in the cryptocurrency market, leading meme coin Dogecoin (DOGE) has staged a stronger rebound than Bitcoin. After succeeding in a technical rebound from oversold territory, whether it can break through the psychological resistance level of $0.10 has emerged as the key factor for a short-term rally.

According to CoinMarketCap on February 14 (local time), Dogecoin traded at $0.0969, up 4.92% over the past 24 hours, slightly outperforming Bitcoin’s 3.93% gain. The rise appears to be less about Dogecoin-specific news and more a synchronized reaction to improved macroeconomic sentiment after the U.S. January Consumer Price Index (CPI) came in at 2.4%, below the market expectation of 2.5%.

As easing inflation eased concerns over aggressive tightening by the Federal Reserve, capital flowed into risk assets broadly. Dogecoin, known for its high beta, actively rode the momentum as the total cryptocurrency market capitalization increased by 3.89%. Additionally, Dogecoin’s unique economic structure—designed with a fixed annual issuance of 5 billion coins, causing its inflation rate to decline over time—has served as a positive narrative among investors, bolstering buying interest.

Technical indicators also flashed clear rebound signals. Dogecoin’s Relative Strength Index (RSI) stood at 37.4, indicating oversold conditions, while strong buying interest near the key support level of $0.09 triggered a resilient recovery. In the short term, whether buying volume can be sustained above the seven-day simple moving average of $0.0949 will be a crucial gauge of further upside momentum.

Experts note that while the current market structure still leans bearish, the recent technical rebound leaves open the possibility of a short-term rally. If the price breaks above the psychological barrier of $0.10 within the next 48 hours and stabilizes above it, gains could extend smoothly toward the next target near $0.122, close to the 50-day moving average.

Conversely, if the current macro-driven relief fades quickly or the price fails to break above $0.10, it could resume its downward trend. Should the key support level of $0.0885 collapse on a daily closing basis, the rebound momentum would be completely invalidated, raising the risk of a drop to $0.06. Market direction should therefore be closely monitored ahead of the next U.S. inflation data release scheduled for March 11.

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