Dogecoin Plummets 5% Amid Lower-Lows Trend, Institutional Liquidation, and Whale Dispersion
Dogecoin experienced a significant decline on Tuesday, dropping 5% to $0.16 and breaking through critical support levels. This downturn occurred amidst intense institutional selling and a surge in trading volume. Adding to the bearish pressure, whale wallets—large holders of DOGE—initiated massive outflows amounting to $440 million.
The token traded within a volatile range around $0.0185, facing considerable selling pressure around 20:00 GMT. Despite the sharp breakdown, Dogecoin saw a swift V-shaped rebound, stabilizing near $0.1550 as dip-buyers entered the market. However, recovery attempts were capped at approximately $0.1700, a resistance level corresponding to previous support zones. Trading volume remained skewed toward the bears, with major exchanges largely participating in the sell-off.
Whales Fuel the Sell-Off
This week witnessed whales selling over 1 billion Dogecoin coins, erasing about $5 billion in market value. Analysts note that large holders have been aggressively reducing their positions, accelerating the bearish momentum. This sell-off marks one of DOGE’s steepest declines in years, pushing the price to levels not seen since 2020.
Sentiment within the meme coin community has notably deteriorated, as institutional interest shifts toward Bitcoin, Ethereum, and other large-cap assets. Market experts caution that the once-ambitious goal of Dogecoin reaching $1 grows increasingly distant, with dwindling confidence among top holders.
Technical Indicators Signal More Downside Ahead
From a technical standpoint, Dogecoin remains entrenched in a lower-highs, lower-lows pattern, underscoring a sustained bearish trend. Recent short-term oversold recoveries appear to be corrective rather than directional.
Momentum indicators continue to show negative signals at hourly intervals, and the Relative Strength Index (RSI) on the daily chart has yet to drop below 40—a level typically associated with stronger bullish reversals. Traders are closely monitoring key short-term support in the $0.1550 to $0.1555 range. A breakdown below this zone could open the path toward $0.1520-$0.1500, where substantial liquidity pools exist due to past accumulation.
Conversely, a decisive move above the $0.1630-$0.1650 area is necessary to surpass the breached resistance at $0.1590, potentially signaling a short-term recovery.
Conclusion
Dogecoin faces considerable headwinds as whale selling and institutional liquidation weigh heavily on its price action. With technicals indicating continued bearish momentum, investors and traders should exercise caution and watch closely for key support and resistance levels to gauge the next move.
https://bitcoinethereumnews.com/tech/dogecoin-price-dogecoin-falls-5-as-lower-lows-pattern-aids-bearish-outlook/
