The memecoin broke below the critical $0.1720 level on heavy volume as sellers dominated the U.S. session, testing the resilience of long-term technical support.
News Background
- Dogecoin extended its decline Tuesday, tumbling 5.5% from $0.1831 to $0.1730 as bearish momentum accelerated across European trading hours.
- The sharp move unfolded within a $0.0121 range as price action confirmed a textbook lower-high, lower-low formation.
- Heavy selling emerged at the $0.1789 resistance zone, triggering a cascade through successive support levels until buyers stabilized the move near $0.1719.
Price Action Summary
- DOGE’s session structure reflects deteriorating momentum with declining support strength.
- The failure to reclaim $0.1789 resistance validates a near-term bearish trend, while compression around $0.1730 highlights uncertainty among short-term traders.
- The $0.1719 zone absorbed multiple retests, forming a fragile base that may define the next pivot for directional traders.
- Volume tapering from peak levels hints at temporary seller exhaustion, but without follow-through buying, the market remains vulnerable to another downside test.
Technical Analysis
- With no major fundamental triggers, price action remains purely technical.
- DOGE’s breakdown below its short-term moving averages reinforces the broader bearish bias that has persisted since early November. The hourly RSI sits near 38, indicating mildly oversold conditions but not yet capitulation.
- Market analyst Kevin (@Kev_Capital_TA) highlights the weekly 200-EMA near $0.16 as Dogecoin’s structural “line in the sand.”
- That level has held through six previous retests since summer, marking the boundary between cyclical pullback and long-term trend reversal.
What Traders Should Know
- The immediate focus is whether the $0.17 handle can hold under continued pressure. Institutional order-flow metrics suggest systematic de-risking rather than panic liquidation — leaving room for a technical rebound if volume subsides further.
- Failure of the $0.1720–$0.1719 support cluster could expose the $0.1650–$0.1600 zone, where the weekly moving average sits as last-ditch structural support.
