The popular cryptocurrency Dogecoin has experienced a sharp decline of nearly 9%, primarily driven by weakness in Bitcoin and the failure of its most significant support level. The downturn occurred despite the recent launch of DOGE exchange-traded funds (ETFs) from Grayscale and Bitwise, which only attracted $2.16 million in their initial week, falling short of expectations for institutional interest.
After breaching the critical support zone at $0.1495, Dogecoin faced a substantial liquidation wave, pushing the token down to new monthly lows. This support level had historically been a strong base for rebounds since late October, making its collapse indicative of a shift from consolidation to an active downtrend. The volume during this sell-off was notable, with 1.56 billion tokens exchanged, which is approximately 6.5 times the daily average, suggesting that the selling pressure was largely driven by liquidation events rather than retail trading.
The price action for Dogecoin unfolded through a series of lower highs and lower lows, culminating in a steep drop towards the $0.1370 region. Although momentum indicators are currently showing oversold conditions, there is no divergence signal present, indicating that the downward pressure may continue. The price remains below the previously established support of $0.1495, while immediate resistance is now at $0.1383, which has repeatedly thwarted recovery efforts.
In a violent sell-off, Dogecoin plummeted from $0.1495 to $0.1377 within 24 hours, beginning its descent at 23:00 UTC and intensifying through three consecutive high-volume candles. The volume spike confirming this downturn underscores the overwhelming nature of the selling, leaving buyers significantly outpaced.
Currently, Dogecoin is consolidating in a narrow range between $0.1372 and $0.1383 following the capitulation drop. This stabilization comes after a dramatic decline, yet the market remains cautious. Losing the $0.1495 support now places it as a critical overhead resistance, and reclaiming this level is crucial for any potential bullish reversal.
Immediate support is identified at $0.1370; failure to hold this level may expose further downside risks towards the $0.1350–$0.1320 range. While oversold conditions could hint at a possible bounce, the lack of confirmation leaves the outlook uncertain. The disappointment surrounding ETF inflows also detracts from a potential recovery narrative, emphasizing the need for a high-volume reclaim of the $0.1420–$0.1450 range as an early indication of bullish momentum returning to the market.
