Dogecoin fell through major support zones on Tuesday, with a large distribution of whales and increasing volume confirming institutional-led selling pressure as traders struggled to defend the $0.16 level.
News background
- DOGE fell 5% to $0.16, breaking below critical support after failing to hold the psychological level of $0.18 earlier in the session.
- The token traded within a volatile range of $0.0185, with selling pressure intensifying throughout the day.
- The steepest declines occurred at 20:00 GMT, when trading volume spiked to 2.05 billion tokens (94% above the daily average) as the price broke through the $0.1590 floor. The move reflected wide institutional distribution, corroborated by on-chain data showing $440 million in DOGE outflows from large holder wallets.
- DOGE hit a session low of $0.1528 before stabilizing near $0.1550, where dip buying emerged. Recovery attempts were limited to $0.1700, confirming resistance near previous support zones.
Price Action Summary
- Following the breakout, a strong V-shaped bounce appeared on the short-term charts.
- However, the bounce failed to maintain the momentum, and the price consolidated below $0.1620 while the breakout level overhead resistance held firm.
- The late-session stabilization indicated temporary exhaustion among sellers, but did not yet indicate a trend change.
- The volume bias remained bearish, and selling activity continues to dominate aggregate flow data on major exchanges.
Technical analysis
- DOGE continues to trade at a Formation of lower highs and lower lowsmaintaining clear bearish momentum within a broader descending structure.
- The brief oversold bounce remains corrective rather than directional, and the overall pattern resembles a classic breakout-break sequence typical of distribution cycles.
- Momentum oscillators remain negative on hourly periods while the daily RSI is yet to recover from levels below 40.
- Traders say a structural improvement would require sustained closures above $0.1650invalidating the existing downward pattern.
What traders need to know
- Traders are closely watching the area between $0.1550 and $0.1555, which continues to act as short-term support.
- A break below this zone would expose between $0.1520 and $0.1500, where deeper liquidity pools exist from previous accumulation phases.
- On the contrary, a recovery above $0.1630 – $0.1650 is necessary to challenge the broken resistance at $0.1590 and signal possible relief in the short term.
- For now, intraday action suggests continued distribution with limited momentum for sustainable bullish follow-through.
