Memecoin broke below the critical $0.1720 level on heavy volume as sellers dominated the US session, testing the resistance of long-term technical support.
News background
- Dogecoin extended its decline on Tuesday, falling 5.5% from $0.1831 to $0.1730 as bearish momentum accelerated in European trading hours.
- The strong move developed within a range of $0.0121 as price action confirmed a textbook formation of lower highs and lower lows.
- Heavy selling emerged at the $0.1789 resistance zone, triggering a cascade through successive support levels until buyers stabilized the move near $0.1719.
Price Action Summary
- DOGE’s session structure reflects deteriorating momentum with decreasing support strength.
- Failure to reclaim the $0.1789 resistance validates a short-term bearish trend, while the compression around $0.1730 highlights uncertainty among short-term traders.
- The $0.1719 zone absorbed multiple tests, forming a fragile base that may define the next pivot for directional traders.
- The gradual reduction in volume from high levels suggests temporary exhaustion of sellers, but without follow-up buying, the market remains vulnerable to another test of the downside.
Technical analysis
- Without major fundamental triggers, the price action remains purely technical.
- DOGE’s drop below its short-term moving averages reinforces the broader bearish bias that has persisted since early November. The hourly RSI sits near 38, indicating mildly oversold conditions but not capitulation yet.
- Market analyst Kevin (@Kev_Capital_TA) highlights the 200-weekly EMA near $0.16 as Dogecoin’s structural “line in the sand.”
- That level has held for six previous retests since the summer, marking the boundary between a cyclical pullback and a long-term trend reversal.
What traders should know
- The immediate focus is whether the $0.17 level can hold under continued pressure. Institutional order flow metrics suggest systematic risk reduction rather than panic liquidation, leaving room for a technical rally if volume declines further.
- Failure of the support group between $0.1720 and $0.1719 could expose the zone between $0.1650 and $0.1600, where the weekly moving average lies as the last structural support.
