Dogecoin Drops 25% Amid $57M Outflows, Tests Key Support at $0.20
Dogecoin experienced a sharp drop, losing 25% of its value, settling at $0.19 after failing to maintain its previous gains above the $0.23–$0.24 range. The break below a rising channel indicated technical weakness.
Technical Analysis
- Failed to hold above the $0.22 mark, leading to rapid selling.
- 20-day and 50-day EMAs around $0.23 now serve as resistance.
- Parabolic SAR indicates a bearish trend.
- Potential further decline towards $0.17–$0.18 if $0.20 support fails.
- Reclaiming $0.22 may signal a potential rebound towards $0.25.
On-Chain Activity
- Significant outflows on October 14, with $57 million leaving exchanges.
- Outflows interpreted as selling pressure rather than fresh buying.
- Social media hype not translating into sustained inflows for Dogecoin.
House of Doge Merger
- Plans to merge with Brag House Holdings Inc. to create a public vehicle in the Dogecoin ecosystem.
- Combined entity will hold 837 million DOGE and $50 million for investments.
- Aims to develop tokenization, yield products, and payment tools to attract institutional interest.
- Initial positive sentiment from announcement was short-lived.
Market Outlook
- $0.20 is key support for DOGE.
- Sustained defense could invite speculative buying, but recovery needs stronger liquidity.