Dogecoin slipped 2.3% to $0.1827 during Tuesday’s trading session, decisively breaking key support at $0.1830 as the whale distribution accelerated and long-term holders began exiting their positions.
This decline occurred against a backdrop of deteriorating technical conditions and increased selling activity in large portfolios.
News context
DOGE rose from $0.1870 to $0.1827 over a 24-hour period, creating a range of $0.0070 that marked its third consecutive session of lower highs.
Price Action Summary
The decline follows three failed attempts to recover above $0.1860, reinforcing resistance there. Heavy distribution persisted throughout the US trading window as algorithmic activity amplified selling pressure.
While short-term traders attempted to defend $0.1830, long-term portfolio data showed a marked change in behavior – a clear rotation from accumulation to liquidation.
On-chain metrics confirmed this decision: 440 million DOGE was offloaded by mid-tier whales (holding 10-100 million tokens) over a 72-hour period. The Hodler Net Position Change metric recorded 22 million outflows of DOGE, a 36% reversal from prior accumulation trends and the largest drawdown in nearly a month.
Technical analysis
Dogecoin’s technical structure moved into a confirmed downtrend following the breakdown of the $0.1830 support. A “death crossover” trend between the 50-day and 200-day EMAs formed in late October, while the 100-day EMA is on track for a similar crossover – both reinforcing the downside bias.
Cost analysis places significant liquidity between $0.177 and $0.179, where approximately 3.78 billion tokens are concentrated. This area now represents the next critical defense zone for the bulls.
At the same time, volume analysis highlights sustained institutional activity: the turnover peak of 274.3 million and the subsequent explosion of 15.5 million during the sell-off suggests that distribution may be entering its final phase before a potential base is formed.
What traders should watch out for
DOGE is trading in a vulnerable position following the outage. The $0.1830 to $0.1850 band remains the immediate pivot zone, while failure to defend $0.177 could trigger a move towards $0.14 – the next pocket of significant liquidity.
Analysts warn that only a sustained recovery to $0.1860 accompanied by above-average volume would negate the current bearish pattern. In the meantime, traders treat short-term rallies as exit opportunities rather than trend reversals.
Whale activity remains the main point of monitoring: any sharp drop in the number of large transactions would signal the end of the distribution phase and the start of a potential accumulation close to the cost base support.
