The memecoin broke below the critical $0.1720 level on heavy volume as sellers dominated the London session and tested the resilience of long-term technical support.
News background
Dogecoin extended its decline on Tuesday, tumbling 5.5% from $0.1831 to $0.1730 as bearish momentum accelerated across European trading hours. The sharp move unfolded within a $0.0121 range as price action confirmed a textbook lower-high, lower-low formation.
The collapse took off at 14:00 GMT as trading volume exploded to 500.6 million tokens – 77% above the 24-hour average of 283 million. Heavy selling occurred at the $0.1789 resistance zone, triggering a cascade through successive support levels until buyers stabilized the move near $0.1719.
Despite modest stabilization late in the session, the DOGE remained stuck near the lows. Attempts to bounce back towards $0.1732 met immediate selling pressure, while elevated activity at 12.5 million tokens per hour during the recovery phase suggested distribution rather than accumulation.
Summary of price action
DOGE’s session structure reflects deteriorating momentum with declining support strength. The failure to regain $0.1789 resistance validates a short-term bearish trend, while compression around $0.1730 highlights uncertainty among short-term traders.
The $0.1719 zone absorbed several retests and formed a fragile base that may define the next pivot point for directional traders. Declining volume from highs suggests temporary seller exhaustion, but without subsequent buying, the market remains vulnerable to another downside test.
Technical Analysis
Without major fundamental triggers, price action remains purely technical. DOGE’s break below its short-term moving average reinforces the broader bearish bias that has persisted since early November. The hourly RSI is near 38, indicating mildly oversold conditions, but not yet capitulation.
Market analyst Kevin (@Kev_Capital_TA) highlights the weekly 200 EMA near $0.16 as Dogecoin’s structural “line in the sand.” That level has held through six previous retests since the summer, marking the boundary between cyclical pullback and long-term trend reversal.
A decisive close below $0.17 will turn the sentiment decisively bearish, while a sustained defense above $0.1720 could allow for a short-term consolidation phase or relief bounce towards $0.1760.
What traders should know
The immediate focus is whether the $0.17 handle can hold under continued pressure. Institutional order flow metrics suggest systematic risk reduction rather than panic liquidation – leaving room for a technical rebound if volume slows further.
Failure of the $0.1720-$0.1719 support cluster could reveal the $0.1650-$0.1600 zone where the weekly moving average sits as the last structural support.
