Dogecoin Plunges 8% as Price Action Points to Bounces

Dogecoin fell sharply on Tuesday, losing 8% to $0.1697, as whales removed $440 million in tokens and trading volume climbed to multi-week highs. The breakdown through $0.18 marked a decisive change in the structure, confirming the sustained institutional distribution in the meme-coin complex.

News Background

• DOGE declined from $0.1843 to $0.1697 over the 24-hour period, breaching several support zones and setting new monthly lows. The volume rose to 3.37 billion tokens – 426% above the daily average – as the cascade of stop-losses accelerated the movement.
• The breakout follows a failed defense of the 0.236 Fibonacci retracement at $0.1787, which triggered liquidation flows and algorithmic selling.
• Bears extended control until midday, taking DOGE to an intraday low of $0.1641 before limited buying emerged.
• Market flows turned decisively negative, as data on the chain recorded $22.27 million in daily exits, while futures turnover increased by 50% to $5.25 billion, even as open interest fell by 4% to $1.67 billion – evidence of extensive deleveraging rather than new speculative demand.

Price Action Summary

• The break of $0.18 represents a structural failure of a support zone defended from early October. Sellers absorbed bids on each pullback, confirming a continuation pattern of the descending channel.
• Intraday data shows the heaviest selling between 03:00-05:00 UTC, with volume peaks above 1 billion tokens.
• Attempts to regain the $0.1760 resistance met immediate rejection. The session closed near the bottom quartile of the range, under persistent institutional control.

Technical analysis

• The whale’s behavior reinforced the bearish picture. Addresses holding 10 million to 100 million DOGE unloaded around 440 million tokens in three sessions, marking one of the steepest mid-tier wallet liquidations this quarter.
• Momentum indicators confirm the risk of capitulation in the short term: RSI has fallen to 34.7, approaching the oversold territory that historically precedes relief demonstrations.
• However, the descending channel formation remains intact, projecting the potential extension towards the $0.165-$0.150 demand zone where the previous rally occurred.

What traders need to know

• DOGE’s immediate outlook depends on stabilization above $0.165. Analysts note the token’s recent pattern of 6-9% one-day drawdowns often precede brief technical rebounds, but sustained recovery requires a daily close above $0.18-$0.185 to neutralize bearish momentum.
• Short-term traders see rallies in the $0.1760-$0.1800 range as distribution opportunities unless broader risk sentiment improves.
• With negative whale flows and unwinding leverage, the near-term volatility remains skewed to the downside until the volume contraction confirms the capitulation.