Dogecoin (DOGE) fell sharply by 8% this Tuesday. The cryptocurrency reached a price of $0.1697. This drop is due to a $440 million whale sell-off, according to on-chain data. Dogecoin technical analysis shows a decisive shift in market structure.
The price drop broke the key support level of $0.18. This confirmed sustained institutional distribution in the memecoin sector. Trading volume surged 426% above the daily average. 3.37 billion tokens were moved, accelerating the drop due to cascading liquidations. The massive sale came from whales. Addresses holding 10M to 100M DOGE sold 440 million tokens over three sessions.
This liquidation is one of the sharpest this quarter. The breach of the 0.236 Fibonacci level at $0.1787 triggered additional liquidation flows. Futures data also showed weakness. Futures volume increased by 50% to $5.25 billion. However, open interest fell by 4%, indicating broad market deleveraging and not new speculative demand.
Is This Drop a Capitulation or the Start of a Major Bear Trend?
Furthermore, Dogecoin technical analysis shows the $0.18 breach is a structural failure. This level had been defended since early October. Momentum indicators confirm a short-term capitulation risk. The RSI dropped to 34.7, approaching oversold territory. Historically, this precedes technical relief bounces. Nonetheless, the descending channel pattern remains intact.
DOGE’s immediate outlook hinges on stabilization. Analysts suggest the $0.165 level is crucial for any recovery. Although these daily drops often precede bounces, a daily close above $0.18 is needed to neutralize the bearish momentum. Meanwhile, traders view rallies toward $0.1760 as distribution (selling) opportunities until broader market sentiment improves.
