Dogecoin extended its losses throughout Tuesday’s session, plunging 6.8% to break below key $0.18 support, as strong whale outflows and high trading activity confirmed institutional distribution in the coin markets.
News context
- DOGE fell sharply from $0.1934 to $0.1803 during the 24-hour session, breaking through several support levels within an 8.9% intraday range. The move comes amid a 44% surge in trading activity above the seven-day average, marking one of the largest single-day volume expansions this month.
- On-chain data revealed over $29 million in large transactions during the outage phase, including a $26.8 million transfer to Binance from a dormant whale address, coinciding with the session’s largest volume spike.
- DOGE’s 3.25% underperformance against the broader crypto market highlighted sector rotation and profit-taking behavior among institutional participants despite risk sentiment across major assets.
Price Action Summary
- Price action carved out a streak of lower highs from the $0.1972 high, confirming the exhaustion of prior bullish momentum. Support appeared around the $0.1780 to $0.1800 band, where buyers briefly stabilized the price after the breakout.
- Whale activity dominated order flow throughout the session, with flows to exchanges accelerating with each rejection attempt.
- The timing of these transfers precisely matched intraday volume increases, validating their influence on DOGE’s downward trajectory.
Technical analysis
- The structure of DOGE shows a clear shift towards a distribution phase, with momentum oscillators turning bearish and the price failing to recover above broken support levels.
- The break below $0.18 completed a short-term upward failure, confirming the continuation of the decline. Volume analysis shows an institutional-wide distribution, with the 1.17 billion turnover representing a 44% increase above weekly averages.
- Technical resistance has reformed between $0.1950 and $0.1970, while immediate support now lies between $0.1780 and $0.1800.
- The total intraday range of 8.9% highlights volatility consistent with the unwinding of leveraged positions.
- The momentum divergence persists on lower timeframes, suggesting further decline towards the $0.166 area if current levels fail to hold.
What traders are watching
- Traders are wondering if DOGE can defend the $0.18 base after several whale-led sell-offs. Rebounds towards $0.181–$0.182 should respond to selling pressure, with liquidity likely concentrated below previous resistance.
- Derivatives data shows that futures open interest is down 61% from October highs, indicating the exit of leveraged participants but not yet confirming reaccumulation.
- Despite seasonal optimism regarding even coin rallies in the fourth quarter, DOGE’s market structure remains fragile and short-term sentiment leans defensive until a confirmed recovery above $0.19 restores technical stability.
