Memecoin fell below the critical $0.1720 level on heavy volume as sellers dominated the London session, testing the resilience of long-term technical support.
News context
Dogecoin extended its decline on Tuesday, falling 5.5% from $0.1831 to $0.1730 as bearish momentum accelerated during European trading hours. The sharp move took place within the $0.0121 range as the price action confirmed a classic lower and lower level formation.
The outage accelerated at 1400 GMT, when trading volume exploded to 500.6 million tokens, 77% above the 24-hour average of 283 million. Strong selling emerged at the $0.1789 resistance area, triggering a cascade of successive support levels until buyers stabilized the move near $0.1719.
Despite modest stabilization late in the session, DOGE remained stuck near the lows. Attempts to rebound towards $0.1732 were met with immediate selling pressure, while high activity of 12.5 million tokens per hour during the recovery phase suggested distribution rather than accumulation.
Price Action Summary
DOGE’s session structure reflects deteriorating momentum with declining support strength. Failure to reclaim resistance at $0.1789 validates a short-term bearish trend, while the squeeze around $0.1730 highlights uncertainty among short-term traders.
The $0.1719 area has absorbed several retests, forming a fragile base that could define the next pivot for directional traders. Declining volumes from peak levels portend temporary seller exhaustion, but without further buying, the market remains vulnerable to another downside test.
Technical analysis
In the absence of major fundamental triggers, price action remains purely technical. DOGE’s breakout below its short-term moving averages reinforces the broader bearish bias that has persisted since early November. The hourly RSI is near 38, indicating slightly oversold conditions but no capitulation yet.
Market analyst Kevin (@Kev_Capital_TA) highlights the weekly 200-EMA near $0.16 as Dogecoin’s “structural line in the sand.” This level has been maintained during six new tests since the summer, marking the limit between a cyclical decline and a reversal of the long-term trend.
A decisive close below $0.17 would shift sentiment decisively to the downside, while a sustained defense above $0.1720 could allow for a near-term consolidation phase or a relief bounce towards $0.1760.
What Traders Should Know
The immediate focus is whether the $0.17 handle can hold under continued pressure. Measures of institutional order flow suggest systematic risk reduction rather than panic liquidation – leaving room for a technical rebound if volume continues to decline.
Failure of the support cluster at $0.1720 to $0.1719 could expose the $0.1650 to $0.1600 zone, where the weekly moving average provides last resort structural support.
