Dogecoin tumbled through major support zones on Tuesday, with heavy whale distribution and rising 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 an early session failure to hold the psychological level of $0.18.
- The token traded within a volatile $0.0185 range, with selling pressure intensifying throughout the day.
- The steepest falls hit at 20:00 GMT as trading volume rose to 2.05 billion tokens – 94% above the daily average – as the price broke through the $0.1590 low. The move reflected a broad institutional distribution, confirmed by on-chain data showing $440 million in DOGE outflows from wallets with large holders.
- DOGE hit 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 previous support zones.
Summary of price action
- A sharp V-shaped recovery appeared on short-term charts after the crash.
- However, the rejection failed to sustain momentum and the price consolidated below $0.1620 as overhead resistance from the breakdown level held firm.
- The stabilization in the late session indicated temporary exhaustion among sellers, but did not yet signal a trend reversal.
- Volume bias remained bearish, with selling activity still dominating aggregate flow data across major exchanges.
Technical Analysis
- DOGE continues to act in one lower-high, lower-low formationmaintaining clear bearish momentum within a broader bearish structure.
- The brief oversold rebound remains corrective rather than directional, with the overall pattern resembling a classic breakdown-pause sequence typical of distribution cycles.
- Momentum oscillators remain negative across hourly timeframes, while the daily RSI has yet to recover from sub-40 levels.
- Traders note that structural improvements will require sustained closures above $0.1650invalidating the existing descending pattern.
What traders should know
- Traders are closely watching the $0.1550-$0.1555 area, which continues to act as short-term support.
- A break below this zone would reveal $0.1520-$0.1500 where deeper pools of liquidity exist from earlier accumulation phases.
- Conversely, recovery above $0.1630-$0.1650 is needed to challenge the broken $0.1590 resistance and signal potential short-term relief.
- So far, intraday action suggests ongoing distribution with limited momentum for sustainable upside follow-through.
