Dogecoin fell below the $0.13 level on Tuesday as heavy spot selling coincided with a sharp rise in derivatives activity, suggesting traders are positioning for broader swings rather than an immediate rebound.
News context
BitMEX reported that Dogecoin futures volume jumped 53,000% to $260 million as traders increased their exposure to the move, a sign that expectations for volatility are rising even as the spot price weakens. The explosion in derivatives turnover was accompanied by heavy spot selling that pushed DOGE through the psychological floor of $0.13, keeping the meme-coin complex under pressure while broader crypto markets remained uneven.
The increase in futures activity also comes as traders continue to use meme coins as expressions of high-beta sentiment, making DOGE more susceptible to positioning changes and pockets of liquidity than many large-cap tokens. This dynamic tends to amplify moves once key levels break through, especially around round supports like $0.13.
Technical analysis
DOGE fell below $0.1300 after sellers squeezed the market during US opening hours, with the key confirmation coming at 4:00 p.m. on December 23, when volume reached 639 million tokens, approximately 101% above the session average. This spike marked a clear change in flow: buyers who had previously defended $0.13 pulled back and the level moved from support to general bid.
On the intraday chart, selling resumed from around 01:41, with price crossing interim supports at $0.1295 and $0.1292. The structure now resembles a descending channel, with DOGE leaning towards the lower boundary as it trades below the short-term moving averages. This usually keeps rallies shallow until the market can recover the broken pivot.
Price Action Summary
- DOGE fell 2.3% from $0.1323 to $0.1292 over 24 hours.
- The $0.1300 bottom broke on the session’s largest spot volume
- The price stabilized near $0.1290 late as volume cooled sharply from peak levels.
- The intraday range widened to $0.0047 (around 3.6%), signaling increasing volatility.
What Traders Need to Know
$0.13 is now the level that matters. If DOGE can recover and hold it, the move looks more like a rinse and reset and could trigger a short covering bounce towards $0.1320. If it fails to reclaim $0.13, the market will likely probe the next group of demand around $0.1285 to $0.1280, where buyers could attempt another defense.
The outsized surge in futures volume suggests traders are bracing for continued volatility rather than a leisurely drift. This can have a two-way effect: it increases the risks of sharp squeezes, but it also means that breakouts can expand quickly if stops trigger below $0.1290 and liquidity diminishes.
