Dogecoin Falls 5% as Lower-Lows Pattern Aids Bearish Outlook
Dogecoin fell 5% to $0.16 after failing to hold the $0.18 psychological level, breaking critical support with trading volume spiking to 94% above the daily average. Institutional-led selling was confirmed via $440 million in outflows from large wallets. Though a brief dip-buying recovery occurred near $0.1550, resistance at $0.1650 held firm, maintaining a bearish momentum within a descending structure. Structural improvement hinges on DOGE sustaining closes above $0.1650, while a drop below $0.1550 could test deeper liquidity pools near $0.1500. Selling pressure and bearish volume skew remain dominant.
Dogecoin Faces Major Breakdown
Dogecoin tumbled through major support zones on Tuesday, with heavy whale distribution and surging volume confirming institutional-led selling pressure. Traders struggled to defend the $0.16 handle as the selling intensified throughout the session.
News Background
DOGE fell 5% to $0.16, breaking below critical support after failing to hold the $0.18 psychological level early in the session. The token traded within a volatile $0.0185 range, with selling pressure peaking at 20:00 GMT when trading volume surged to 2.05 billion tokens, 94% above the daily average. At the lows, DOGE hit $0.1528 before stabilizing near $0.1550, where dip-buying emerged.
Price Action Summary
A sharp V-shaped rebound appeared on short-term charts following the breakdown. However, the bounce failed to sustain momentum, with price consolidating below $0.1620 as overhead resistance from the breakdown level remained intact. Late-session stabilization suggested temporary exhaustion among sellers, though there was no clear signal of a trend reversal. Volume skew remained bearish, with selling activity dominating aggregate flow data across major exchanges.
Technical Analysis
DOGE continues to trade in a lower-highs, lower-lows formation, indicating clear bearish momentum within a broader descending structure. The brief oversold rebound is viewed as corrective rather than a directional change, with the overall pattern resembling a breakdown–pause sequence typical of distribution cycles.
Momentum oscillators remain negative across hourly timeframes, and the daily RSI has yet to recover from sub-40 levels. Structural improvement would require sustained closes above $0.1650, invalidating the existing descending pattern.
What Traders Should Know
Traders are closely watching the $0.1550–$0.1555 area, which serves as short-term support. A breakdown below this zone would expose $0.1520–$0.1500, where deeper liquidity pools are located from prior accumulation phases. Conversely, a recovery above $0.1630–$0.1650 is necessary to challenge the broken $0.1590 resistance and signal potential short-term relief.
For now, intraday action suggests ongoing distribution with limited momentum for sustainable upside follow-through.