Dogecoin extended its losses during the session on Tuesday, falling 6.8% to break below the key support at $0.18, as strong whale outflows and elevated trading activity confirmed the institutional distribution in the meme coin markets.
News background
- DOGE fell sharply from $0.1934 to $0.1803 during the 24-hour session, breaking multiple support levels within an 8.9% intraday range. The move came amid a 44% increase in trading activity above the seven-day average, marking one of the largest single-day volume expansions this month.
- On-chain data revealed more than $29 million in large transactions during the breakout phase, including a $26.8 million transfer to Binance from an inactive whale address, coinciding with the session’s largest volume increase.
- DOGE’s 3.25% underperformance compared to the broader crypto market underlined sector rotation and profit-taking behavior among institutional participants despite risk-on sentiment in major assets.
Price Action Summary
- The price action created a sequence of lower highs from the $0.1972 peak, confirming the exhaustion of the previous bullish momentum. Support emerged around the $0.1780 to $0.1800 band, where buyers briefly stabilized the price after the collapse.
- Whale activity dominated the order flow throughout the session, with entries into the exchanges accelerating during each rejection attempt.
- The timing of these transfers precisely coincided with intraday volume surges, validating their influence on DOGE’s downward trajectory.
Technical analysis
- The DOGE structure shows a clear shift towards a distribution phase, with momentum oscillators turning bearish and the price failing to recover above broken support levels.
- The drop below $0.18 completed a short-term rising wedge failure, confirming the continuation of the decline. The volume analysis shows a distribution on an institutional scale, with a turnover of 1,170 million, which represents an increase of 44% above the weekly averages.
- Technical resistance has reformed between $0.1950 and $0.1970, while immediate support now lies between $0.1780 and $0.1800.
- The total intraday range of 8.9% highlights volatility consistent with the liquidation of leveraged positions.
- The momentum divergence persists on lower time frames, suggesting further decline towards the $0.166 zone if the current levels fail to hold.
What traders are watching
- Traders are focused on whether DOGE can defend the $0.18 base after multiple whale-triggered sell-offs. Relief rallies towards $0.181-$0.182 are expected to face selling pressure, and liquidity is likely to concentrate below the previous resistance.
- Derivatives data shows that futures open interest fell 61% from October highs, indicating the exit of leveraged participants but not yet confirming reaccumulation.
- Despite seasonal optimism from Q4 meme coin rallies, the DOGE market structure remains fragile and near-term sentiment leans defensive until a confirmed recovery above $0.19 restores technical stability.
