Dogecoin Price: Dogecoin Falls 5% as Lower-Lows Pattern Aids Bearish Outlook

Dogecoin plummets 5 percent in a lower-lows trend, institutional liquidation, and whale dispersion. The technical perspective is still negative, with traders observing major support areas.​

Dogecoin fell on Tuesday by 5 percent to $0.16 and cut across significant support bands. 

The action was during extreme institutional selling and a high volume of trading. Whale distribution exacerbated, with massive $440 million outflows by big holder wallets of the DOGE. 

The token was trading in a volatile range of $0.0185, with an overall high selling pressure at 20:00 GMT.​

The breakdown was followed by a sharp V-shaped rebound. Price stabilized a little at about $0.1550, where dip-buying cropped up. The recovery operations were limited up to 0.1700, which proved resistance along previous support areas. 

Volume was skewed bearishly, where major exchanges were mostly sold.​

Whales Fuel the Sell-Off

Whales sold over 1 billion Dogecoin coins this week, eliminating approximately 5 billion in market value. 

Analysts record that large holders have been flattening out postures in an aggressive manner, enhancing the push of the bears. 

The sell-off is one of the sharpest falls of Dogecoin in years, which brought it to its lowest point since 2020.​

The mood in the meme coin industry has worsened. The institutional interest has changed to Bitcoin, Ethereum, and other large-cap assets. 

Analysts caution that the way to $1 is growing more distant, as confidence amongst the top holders is dwindling.​

Technicals Signal More Pain Ahead

Dogecoin is still in a low-highs, low-lows structure, with a more evident bearish trend. The short-term oversold recovery is just remedial but not directional. 

The momentum oscillators are continuing to be negative at the hourly levels and the RSI at the daily level has not reached the level of sub-40.​

The traders are paying close attention to its short-term support of the area of $0.1550 to 0.1555. 

Any weakness beneath this area would open up $0.15201500, in which more serious pools of liquidity would be present as a result of previous accumulation periods. 

On the other hand, a move beyond $0.1630- 0.1650 recovery is needed to overcome the breached 0.1590 resistance and hint at a more immediate reprieve.

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