DOGE broke through key resistance at $0.1815 during the session on Tuesday as volume surged 96% above average before a late-session reversal erased most of the intraday gains. The move created a lower high formation indicating a possible change in near-term momentum.
News background
- Dogecoin advanced 3.1% to $0.1824 in trading on Tuesday, extending a multi-session rally before encountering selling pressure near the $0.184 area.
- The meme coin traded between $0.1769 and $0.1838, creating a 3.9% range as traders tested the upper limits of the channel.
- The Bitwise Spot DOGE ETF could launch within 20 days through an automatic approval process, making it a catalyst for Dogecoin price predictions.
- Bitwise’s approach puts the memecoin ETF on a 20-day countdown to automatic approval under Section 8(a) of the Securities Act, barring SEC intervention.
- DOGE consolidated between $0.1810 and $0.1835 during mid-session trading, with buyers defending the $0.1800 support.
- However, the reversal at the end of the session indicated exhaustion among short-term traders after repeated tests of intraday highs.
Price Action Summary
- DOGE’s rally stalled abruptly at 14:00 GMT as profit-taking triggered a 1.1% retracement from $0.1842 to $0.1821. The correction developed on high volume of 7.8 million tokens, piercing provisional support near $0.1830 and disrupting the previous ascending channel structure.
- The switch established a lower high formation at $0.1842/$0.1821, a common early sign of weakening bullish momentum.
- Despite the overall intraday gains, the market’s inability to stay above breakout levels suggests the move may have been driven by short-term liquidity rather than sustained accumulation.
Technical analysis
- Dogecoin’s short-term structure remains constructive above $0.1800, but vulnerable to fresh selling below $0.1820. The ascending channel visible on the 4-hour charts was compromised by the late session breakout, introducing a neutral to bearish bias heading into mid-week trading.
- Momentum indicators show waning strength: the RSI dropped from 64 to 52, while the MACD narrowed towards convergence. High trading volume during the reversal phase points to an active distribution, although support zones near $0.1800 continue to attract buying interest.
What traders should know
- DOGE’s short-term path depends on its ability to defend the support at $0.1800 and regain the resistance between $0.1835 and $0.1840.
- A close above this band could restore momentum towards $0.1860-$0.1880, while failure to hold the support risks retesting the $0.1760 base.
- Analysts note that ETF speculation remains a background catalyst, but near-term price action appears to be driven primarily by technical positioning and profit-taking flows from recent whale accumulation.
