Dogecoin broke below key support at $0.1940 during the session on Tuesday, falling 5.5% to $0.1843 as institutional selling overwhelmed buyers. The crash came amid a sharp 180% volume surge that underlined renewed distribution pressure across the meme coin sector amid risk-off sentiment in the broader crypto markets.
News background
- DOGE fell from $0.1951 to $0.1843, marking one of its steepest one-day declines this month.
- The move developed within a trading range of $0.0174, equivalent to intraday volatility of 9.4%, as market participants unwound leveraged positions following repeated rejections at overhead resistance.
- Trading activity soared to 1.17 billion tokens, nearly 180% above daily averages, as sales flows accelerated through midday. The volume remained above 995 million for several hours, confirming liquidation on an institutional scale.
- The price briefly stabilized near $0.1765, where buying attempts on dips appeared but failed to reverse the momentum.
- The session’s weakness reflected broader weakness in speculative digital assets, although Dogecoin’s 43% gain so far this year still leaves it among the strongest large-cap players of 2025.
- The immediate concern now centers on whether the bulls can reassert control following significant technical damage to the near-term structure.
Price Action Summary
- The breakout sequence began early Tuesday when DOGE broke above $0.1940, a key level that had repeatedly served as a short-term floor in the October sessions.
- Institutional orders hit the market in clusters, driving volumes well above statistical norms and cascading towards $0.1840 intraday.
- After a brief recovery attempt, DOGE settled in a tight range of $0.1850 to $0.1860, suggesting stabilization but not confirmation of support.
- Momentum indicators showed a pronounced bearish divergence, with the RSI falling towards oversold readings on both the hourly and four-hour charts. Meanwhile, futures open interest fell marginally, indicating some deleveraging among speculative traders.
Technical analysis
- DOGE’s technical profile remains fragile following the loss of $0.1940 support. The price pattern has now completed a fifth wave within a corrective sequence, implying that short-term exhaustion could precede an eventual base formation near $0.1840 – $0.1765.
- Volume data reinforces that large participants drove the move: daily turnover eclipsed 1.17 billion tokens, confirming institutional distribution.
- The liquidation has reduced DOGE’s liquidity footprint, with aggregate daily flows falling from $20 billion in early October to approximately $5 billion, a dynamic that limits breakout potential until new demand enters the market.
- Resistance now lines up around $0.1950, with a more significant supply cluster near $0.218, identified by analysts as the key battleground for bulls attempting to regain a higher trend structure.
What traders should keep in mind
- Traders are monitoring whether DOGE can hold above the $0.1840 base and avoid a retest of the $0.1765 level that defines near-term structural integrity.
- A sustained recovery above $0.1950 would neutralize the immediate bearish bias, but continued weakness below this threshold keeps downside targets active.
- For now, the setup favors cautious positioning as traders await confirmation that selling pressure has exhausted near current supports.
