Dogecoin fell sharply Tuesday, losing 8% to $0.1697 as whales dumped $440 million in tokens and trading volume surged to multi-week highs. The breakdown through $0.18 marked a decisive shift in structure, confirming sustained institutional distribution across the meme-coin complex.
News Background
- DOGE declined from $0.1843 to $0.1697 over the 24-hour period, breaching multiple support zones and establishing new monthly lows. Volume spiked to 3.37 billion tokens — 426% above daily averages — as cascading stop-losses accelerated the move.
- The breakdown followed a failed defense of the 0.236 Fibonacci retracement at $0.1787, which triggered liquidation flows and algorithmic selling.
- Bears extended control through midday, driving DOGE to an intraday low of $0.1641 before limited dip-buying emerged.
- Market flows turned decisively negative as on-chain data recorded $22.27 million in daily outflows, while futures turnover rose 50% to $5.25 billion even as open interest slid 4% to $1.67 billion — evidence of broad deleveraging rather than new speculative demand.
Price Action Summary
- The $0.18 breakdown represented a structural failure of a support zone defended since early October. Sellers absorbed bids across each rebound, confirming a descending-channel continuation pattern.
- Intraday data showed the heaviest selling between 03:00–05:00 UTC, with volume peaks above 1 billion tokens.
- Attempts to reclaim $0.1760 resistance met immediate rejection. The session closed near the bottom quartile of the range, underscoring persistent institutional control.
Technical Analysis
- Whale behavior reinforced the bearish picture. Addresses holding 10 million–100 million DOGE off-loaded roughly 440 million tokens over three sessions, marking one of the steepest mid-tier wallet liquidations this quarter.
- Momentum indicators confirm short-term capitulation risk: RSI dropped to 34.7, approaching oversold territory that historically precedes relief rallies.
- Still, the descending-channel formation remains intact, projecting potential extension toward the $0.165–$0.150 demand zone where previous accumulation occurred.
What Traders Should Know
- DOGE’s immediate outlook hinges on stabilization above $0.165. Analysts note the token’s recent pattern of 6–9% single-day drawdowns often precedes brief technical bounces, but sustained recovery requires a daily close above $0.18–$0.185 to neutralize bearish momentum.
- Short-term traders view rallies into $0.1760–$0.1800 as distribution opportunities unless broader risk sentiment improves.
- With whale flows negative and leverage unwinding, near-term volatility remains skewed to the downside until volume contraction confirms capitulation.
Source: https://www.coindesk.com/markets/2025/11/04/dogecoin-plunges-8-as-price-action-points-to-brief-technical-bounces
