DOGE Drops to 22-Cent Support Amid $782 Million Trading Volume
Dogecoin (DOGE) Overview
Dogecoin experienced a decline, erasing previous gains despite significant institutional accumulation. Key points include:
- DOGE fell from $0.23 to $0.22, a 4% drop within 24 hours.
- A liquidation wave occurred with trading volumes reaching 782 million DOGE, nearly double the daily average.
- Industry-wide liquidations surpassed $1 billion due to U.S. inflation data affecting Fed rate-cut expectations.
- Institutional buyers accumulated 2 billion DOGE worth approximately $500 million this week, totaling reported holdings of 27.6 billion DOGE.
Price Action Summary
- DOGE showed 5% intraday volatility, testing critical support at $0.22.
- A late-session rebound indicated demand at lower levels.
- Resistance is forming around $0.23, where profit-taking has emerged.
Technical Analysis
- Breakdown from $0.23 may invalidate prior bullish trends, establishing $0.22 as a new short-term floor.
- The volume surge suggests capitulation selling, potentially indicating a bottom formation.
- Support levels are at $0.22 and $0.21; resistance levels are at $0.23 and $0.25.
- Mixed signals from indicators: RSI nearing oversold territory, but momentum remains negative.
Traders' Focus
- Monitoring institutional accumulation if $0.22 breaks, which may indicate market sentiment.
- Broader market risk sentiment influenced by equity weakness and macroeconomic factors.
- Ongoing crypto liquidations reflect market fragility; further macro shocks could exacerbate declines.
- A recovery above $0.23 would signal a potential reversal; otherwise, a test of $0.21 support is probable.