Dogecoin fell below the $0.13 level on Tuesday as heavy spot selling coincided with a sharp jump in derivatives activity, suggesting traders are positioning for broader swings rather than an immediate recovery.
News background
BitMEX reported that Dogecoin futures volume rose 53,000% to $260 million as traders increased exposure to the move, a sign that volatility expectations are rising even as the spot price weakens. The burst in derivatives trading came alongside a sharp sell-off that pushed DOGE through the $0.13 psychological bottom, keeping the meme coin complex under pressure while broader crypto markets remained choppy.
The surge in futures activity also comes as traders continue to use meme coins as high-beta expressions of sentiment, making DOGE more sensitive to positioning shifts and pockets of liquidity than many high-cap tokens. This dynamic tends to amplify moves when key levels are broken, especially around round number supports like $0.13.
Technical analysis
DOGE broke below $0.1300 after sellers pressured the market in US hours and the key confirmation came at 16:00 on December 23, when volume reached 639 million tokens, about 101% above the session average. This rise marked a clear change in flow: buyers who had previously defended $0.13 retreated and the level turned from support to overhead supply.
On the intraday chart, sales rose again from around 01:41, with price cutting through interim support at $0.1295 and $0.1292. The structure now looks like a descending channel, with DOGE leaning towards the lower limit as it trades below short-term moving averages. It typically keeps rallies shallow until the market can regain the broken pivot.
Price action overview
- DOGE down 2.3% from $0.1323 to $0.1292 over 24 hours
- The $0.1300 floor broke on the heaviest spot volume of the session
- The price stabilized near $0.1290 late as volume cooled sharply from peak levels
- The intraday range widened to $0.0047 (about 3.6%), signaling increasing volatility
What traders should know
$0.13 is now the level that matters. If DOGE can recover and hold, the move looks more like a flush-and-reset and could trigger a chart-wide bounce back towards $0.1320. If it fails to recover $0.13, the market is likely to examine the next demand group around $0.1285-$0.1280, where buyers may attempt another defense.
The big jump in futures volume suggests traders are bracing for continued volatility rather than a quiet run. That can cut both ways: it increases the odds of sharp squeezes, but it also means that breaks can be extended quickly if stops trigger below $0.1290 and liquidity thins.
