Dogecoin Falls Below Crucial Support Zone: Major Investors Increase Selling Pressure

Dogecoin fell through key support zones on Tuesday, with significant selling pressure from large investors (known as "whales") and rising trading volume confirming institutionally led selling. The battle to defend the $0,16 milestone is proving significantly tougher than expected.

DOGE's value fell 5% to $0,16, breaking below a crucial support zone after failing to hold the psychological level of $0,18 in early trading hours. Throughout the day, DOGE faced a fluctuating price range around $0,185, with selling pressure gradually increasing. The largest price drop occurred at 20:00 GMT, when trading volume surged to a staggering 2,05 billion tokens—94% above the daily average. This activity reflected broad institutional distribution, as confirmed by on-chain data showing an outflow of $440 million worth of DOGE from large holders.

DOGE reached a low of $0,1528 before stabilizing around $0,1550, where buyers entered the market. However, recovery attempts were limited at $0,1700, confirming that resistance exists at previous support zones.

Short-term charts showed a sharp V-shaped retracement after the breakout. However, this bounce failed to maintain momentum, causing the price to consolidate below $0,1620, where the resistance of the breakout level remained firmly in place. The stabilization at the end of the session indicated temporary exhaustion among sellers, but did not yet signal a trend reversal. Volume remained bearish, with selling activity dominating aggregate flow data across major exchanges.

Technical analysis

DOGE continues to move within a formation of lower highs and lower lows, indicating continued bearish momentum within a broader descending pattern. The short-term oversold rebound appears more corrective than directional, with the pattern exhibiting a classic breakout-pause cycle typical of distribution phases. The momentum oscillators remain negative on hourly time frames, while the daily RSI has not yet recovered from levels below 40. For traders, it is clear that structural improvement is needed, with sustained closes above $0,1650 being essential to invalidate the existing descending pattern.

Traders are closely monitoring the $0,1550-$0,1555 zone, as it continues to serve as short-term support. A break below this zone would pave the way to $0,1520-$0,1500, where deeper liquidity pockets from previous accumulation phases are located. On the other hand, a recovery above $0,1630-$0,1650 is necessary to challenge the broken resistance at $0,1590 and signal potential short-term relief. For now, intraday activity points to a continuation of the distribution, with limited opportunities for sustained upward breakouts.

Frequently Asked Questions

How do these sales affect the long term for Dogecoin?
The recent sales suggest there is significant investor distrust, which will affect future course Dogecoin can undermine its price. It's crucial that the price stays above certain support levels to ensure stability.

What could trigger DOGE to go up again?
A significant break above the $0,1650 and $0,1700 resistance levels could give a positive turn to the market and attract more buyers, which can support the price.

Why is it important to track volume?
Volume indicates how much is being traded and can help identify the direction and strength of current price trends. Higher volumes during price declines often indicate strong selling pressure, something traders should be aware of.