Dogecoin (DOGE) is once again in the spotlight as Coinbase brings added functionality to the popular meme-inspired cryptocurrency. The reveal of Wrapped Dogecoin (cbDOGE) on Ethereum’s Layer-2 network, Base, has trigger a fresh wave of attention—but will it be enough to reverse recent price declines?

Wrapped Dogecoin (cbDOGE) is a new tokenrevealed by Coinbase that allows DOGE to be used on Ethereum’s Base network. This version of Dogecoin is pegged 1:1 with the original DOGE and unlocks the potential for users to participate in Ethereum’s decentralized finance (DeFi) applications. From lending and borrowing to staking and trading on decentralized exchanges, DOGE can now find new use cases beyond basic transactions.

While this development marks an important step forward for Dogecoin in terms of utility, the price has not yet reacted positively. At the time of writing, DOGE is trading at approximately $0.1766, down nearly 7% in the past 24 hours. Despite the pullback, the token remains up by over 13% over the past week, hinting at a volatile but resilient trend.

DOGE Faces Mixed Market Signals

DOGE’s price action shows it recently faced a strong rejection near the $0.25 mark, a level that has acted as key resistance in past rallies. Following the rejection, it has been consolidating around $0.176, sitting just under the short-term 9-period simple moving average (SMA) of $0.1809.

The Relative Strength Index (RSI), a key technical indicator, has dropped to 33.23. This places DOGE in oversold territory, often considered a zone where buying interest may begin to return. If bulls manage to defend current support levels, a short-term rebound could push DOGE toward resistance levels at $0.1966 and possibly back to $0.22.

However, if selling pressure increases and DOGE fails to hold above $0.1652—identified as a crucial support level—it could lead to further downside in the near term.

Market Sentiment and Broader Trends

The reveal of cbDOGE comes at a time when developers and exchanges are increasingly focused on bringing traditional coins into the DeFi world. By enabling DOGE to interact with DeFi protocols on Ethereum’s Base network, Coinbase is addressing one of the longstanding criticisms of Dogecoin—its limited use beyond speculative trading and tipping.

DOGE’s integration into Base could pave the way for new use cases and long-term holder utility, especially if projects begin accepting cbDOGE in real-world applications or smart contract systems.

The overall market sentiment remains cautious. Bitcoin and Ethereum have also experienced mild corrections recently, and Dogecoin tends to follow their lead. That said, cbDOGE could become a differentiating factor if adoption picks up across DeFi platforms.

Key Levels to Watch

Support:

• $0.176 (current level)

• $0.1652 (critical breakdown point)

Resistance:

• $0.1966 (immediate resistance)

• $0.22 (short-term bullish target)

• $0.25 (major breakout level)

If the $0.1652 support holds and momentum returns with improved sentiment from cbDOGE adoption, DOGE could reclaim higher levels in the coming days or weeks. However, traders should remain cautious of false breakouts, particularly with broader market volatility.

Looking Ahead

DOGE is currently caught between bullish potential and bearish pressure. The technicals suggest a possible relief rally, while cbDOGE adds a compelling narrative for long-term growth. Whether this narrative translates into real price momentum depends on broader market dynamics and how quickly users embrace the new wrapped token on Ethereum’s DeFi protocols.

For now, Dogecoin investors should watch support levels closely and monitor adoption trends of cbDOGE. If cbDOGE sees traction across the Ethereum DeFi ecosystem, it could inject sustained interest in DOGE beyond the usual hype cycles.