What Next as Dogecoin Falls 5%

Dogecoin fell through major support zones on Tuesday, with heavy whale distribution and increasing volume confirming institutional-led selling pressure as traders scrambled to defend the $0.16 handle.

News Background

• DOGE fell 5% to $0.16, breaking below critical support after a first-session failure to hold the psychological level of $0.18.
• The token traded in a volatile range of $0.0185, with selling pressure intensifying throughout the day.
• The steepest declines were at 20:00 GMT, when the trading volume reached 2.05 billion tokens – 94% above the daily average – as the price sliced ​​through the $0.1590 floor. The move reflects a wide institutional distribution, confirmed by on-chain data showing $440 million in DOGE outflows from large wallets.
• DOGE reached a session low of $0.1528 before stabilizing near $0.1550, where dip-buying emerged. Recovery attempts were capped at $0.1700, confirming resistance near the earlier support areas.

Price Action Summary

• A sharp V-shaped rebound appeared on the short-term charts after the breakout.
• However, the bounce failed to sustain the momentum, with the price consolidating below $0.1620 as resistance above the breakout level held firm.
• The end-of-session stabilization indicated temporary exhaustion among sellers, but did not signal a trend reversal yet.
• The volume trend was bearish, with selling activity still dominating the aggregate flow data on the major exchanges.

Technical analysis

• DOGE continues to trade in a low-high, low-low trainingmaintaining a clear bearish momentum in a broader descending structure.
• The brief oversold rebound remains corrective rather than directional, with the overall pattern resembling a classic break-break sequence typical of distribution cycles.
• Momentum oscillators remain negative across the hourly timeframe, while the daily RSI has yet to recover from sub-40 levels.
• Traders note that structural improvement would require sustained closures $0.1650invalidating the existing descendent model.

What traders need to know

• Traders are closely watching the $0.1550-$0.1555 area, which continues to act as short-term support.
• A break below this zone will expose $0.1520-$0.1500, where deeper liquidity pools exist from previous accumulation phases.
• Conversely, recovery above $0.1630–$0.1650 is needed to challenge the broken $0.1590 resistance and signal potential short-term relief.
• For now, intraday action suggests an ongoing distribution with limited momentum for a sustainable follow-up to the upside.