Dogecoin plunged nearly 8% after collapsing from its most important support level, triggering a wave of high-volume liquidation that eclipsed moderate ETF inflows and sent memecoin to new monthly lows.
• DOGE ETFs from Grayscale and Bitwise only generated $2.16 million in inflows in first week
• The launch of the ETF was expected to attract institutional attention, but demand was far from sufficient.
• Market-wide risk aversion continues as Bitcoin drifts near its multi-month low.
• Meme tokens face outsized volatility as liquidity conditions deteriorate
• Large holders remain net sellers despite the debut of ETFs
DOGE’s collapse below the well-established support level of $0.1495 marks a significant break in the structure. This zone has served as the basis for every major rebound since late October, making its breakout a structural shift from consolidation to an active downtrend.
The volume profile confirms the legitimacy of the distribution. DOGE saw 1.56 billion tokens traded during the decisive sales window, approximately 6.5 times the daily average. This level of participation is typical of liquidation or algorithmic selling events rather than retail-induced volatility. The decline proceeded through a sequence of lower highs and lower lows, culminating in a sharp vertical decline towards the $0.1370 range.
Momentum indicators are largely oversold, but no divergence signals have formed. DOGE price remains stuck below the broken support at $0.1495, while immediate resistance at $0.1383 continues to reject recovery attempts. Until DOGE reclaims lost levels with conviction and volume, the structure favors continuation rather than reversal.
DOGE rose from $0.1495 to $0.1377 during a violent 24-hour sell-off. The outage began at 23:00 UTC and accelerated over three consecutive high volume candles. The volume spike of 1.56 billion – 650% above average – confirmed that buyers were completely overwhelmed. DOGE attempted slight rebounds near $0.1383, but failed repeatedly against intraday resistance. The token is now consolidating between $0.1372 and $0.1383 in a tight range, indicating temporary stabilization after the capitulation decline.
• The loss of $0.1495 turns the level into major resistance: it is essential to recover it.
• Immediate support lies at $0.1370; a failure here exposes $0.1350 to $0.1320
• Oversold numbers suggest a rebound is possible but not yet confirmed.
• ETF disappointment removes key bullish narrative for near-term recovery
• Watch for a high volume recovery from $0.1420 to $0.1450 as early bullish signs return
