Dogecoin Near Make-or-Break Zone as Fresh Bitcoin Slide Pulls Down Majors by 5%
Dogecoin dropped significantly, breaking below the critical $0.1720 support level with heavy selling activity, reflecting a bearish trend. The price fell by 5.5% to $0.1730, forming a lower-high, lower-low structure, and stabilized near $0.1719 after multiple retests. Technical indicators such as the hourly RSI suggest mildly oversold conditions, while traders focus on whether the $0.17 level can hold under pressure. Market analysts point to the weekly 200-EMA at $0.16 as critical structural support, with failure to hold at $0.1719 potentially exposing the $0.1650–$0.1600 range for further declines. The market's movement remains technically driven with a possibility for short-term rebounds if selling subsides further.
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Critical Level Breach
The memecoin dropped below the crucial $0.1720 level, accompanied by heavy selling during the U.S. session. Sellers dominated the market, sharply testing the resilience of long-term technical support.
News Background: Steep Decline Observed
Dogecoin extended its decline on Tuesday, falling 5.5% from $0.1831 to $0.1730 as bearish momentum gained strength through European trading hours. The move confirmed a textbook lower-high, lower-low formation, with heavy selling activating near the $0.1789 resistance zone, cascading through successive support levels. The drop stabilized as buyers emerged around $0.1719.
Price Action Summary
DOGE's session structure indicates weakening momentum, characterized by the failure to reclaim the $0.1789 resistance, validating a short-term bearish trend. The compression near $0.1730 reflects mixed sentiment among short-term traders. The $0.1719 support zone has absorbed multiple tests, creating a fragile base that may act as a pivotal level for directional traders.
Additionally, volume tapering from its peak levels suggests temporary exhaustion among sellers. However, without evidence of follow-through buying, the market still risks another potential downside test.
Technical Analysis
With no major fundamental updates driving the action, DOGE's moves remain within the technical domain. The breakdown beneath its short-term moving averages reinforces the broader bearish bias that has persisted since early November. Meanwhile, the hourly RSI rests near 38, signaling mildly oversold territory but stopping short of capitulation.
Market analyst Kevin (@Kev_Capital_TA) highlights the weekly 200-EMA near $0.16 as the structural “line in the sand.” According to him, this level has successfully supported six retests since summer, representing a boundary between a cyclical pullback and a larger shift in the long-term trend.
What Traders Should Watch
Traders must monitor whether the $0.17 handle can withstand ongoing downward pressure. Institutional order-flow data suggests systematic de-risking rather than panic liquidation — leaving room for a possible technical bounce if selling volumes further decline.
Failure of the $0.1720–$0.1719 support cluster could expose DOGE to lower levels within the $0.1650–$0.1600 zone, where the weekly moving average represents the final key structural support.