Dogecoin Faces Key Support Test After Multi-Year Trendline Break
Dogecoin (DOGE) experienced a 5% decline, dropping to $0.153 after breaking below the $0.161 support level. Trading volume surged to 1.264 billion DOGE, approximately 168% higher than average, indicating significant institutional selling pressure. Despite the price drop, whale holders have accumulated 4.72 billion DOGE, valued at around $770 million, over the past two weeks, which signals potential future volatility.
The critical horizontal support level at $0.1520 must hold to prevent further declines. A break below this point could accelerate the drop towards $0.150 and eventually to $0.120, where multi-year volume nodes concentrate. This recent downturn marks the first time since 2021 that DOGE has broken its multi-year rising trendline. The relative strength index (RSI) shows a bullish divergence near a developing double-bottom around $0.155, suggesting a slowdown in momentum rather than an immediate reversal.
To stabilize the trend, DOGE needs to reclaim the $0.159 to $0.160 range. Failure to do so might expedite the downside movement toward the $0.150 and $0.120 support areas. External challenges facing DOGE include Bitcoin's death cross and broader macroeconomic risk-off conditions. Meanwhile, speculation surrounds Bitwise and Grayscale preparing spot DOGE ETF filings, which could influence market dynamics.
The meme-coin sector has underperformed amid a roughly 2% fall in overall cryptocurrency market capitalization during renewed risk-off flows. Whale buying activity remains a significant wildcard in the ongoing market evolution.
