DOGE broke above key resistance at $0.1815 during Tuesday’s session as volume surged 96% above average before a late-session reversal erased most intraday gains. The move created a lower high formation that signals a potential near-term shift in momentum.
News background
- Dogecoin rose 3.1% to $0.1824 in Tuesday’s trade, extending a multi-session rally before encountering selling pressure near the $0.184 zone.
- The meme coin traded between $0.1769 and $0.1838, carving out a 3.9% range as traders tested upper channel limits.
- The Bitwise spot DOGE ETF could launch within 20 days through an automated approval process, making it a catalyst for dogecoin price predictions.
- Bitwise’s approach places the memecoin ETF on a 20-day countdown to automatic approval under Section 8(a) of the Securities Act, barring SEC intervention.
- DOGE consolidated between $0.1810 and $0.1835 in mid-session trade, with buyers defending $0.1800 support.
- But the reversal in the late session indicated exhaustion among short-term traders after repeated tests of intraday highs.
Summary of price action
- DOGE’s rally came to an abrupt halt at 14:00 GMT as profit-taking sparked a 1.1% retreat from $0.1842 to $0.1821. The correction unfolded on elevated volume of 7.8 million tokens, puncturing temporary support near $0.1830 and disrupting the previously rising channel structure.
- The move established a lower high formation at $0.1842/$0.1821, a common early signal of weakening bullish momentum.
- Despite general intraday gains, the market’s inability to hold above breakout levels suggests the move may have been driven by short-term liquidity rather than sustained accumulation.
Technical Analysis
- Dogecoin’s short-term structure remains constructive above $0.1800, but vulnerable to renewed selling below $0.1820. The ascending channel visible on 4-hour charts was compromised by the late-session breakdown, introducing a neutral-to-bearish bias heading into midweek trading.
- Momentum indicators show waning strength: RSI fell from 64 to 52, while MACD narrowed towards convergence. The elevated turnover during the reversal phase points to active distribution, although support zones near $0.1800 continue to attract buying interest.
What traders should know
- DOGE’s short-term path depends on its ability to defend $0.1800 support and regain resistance around $0.1835-$0.1840.
- A close above this band could restore momentum towards $0.1860-$0.1880, while a lack of support risks retesting the $0.1760 base.
- Analysts note that ETF speculation remains a background catalyst, but near-term price behavior appears to be primarily driven by technical positioning and profit-taking flows from recent whale accumulation.
