Dogecoin Slides Over 10% in Midnight Sell-Off as Traders Watch for Support Formation
Dogecoin took a sharp hit overnight, plunging more than 10% in a high-volume sell-off that sent shockwaves through the meme coin market. The sudden move has left traders scrambling to assess whether the worst is over—or if more downside could follow.
The cryptocurrency, trading under DOGE, fell from $0.226 to $0.202 in a swift decline that began around midnight. Trading volume surged to 1.18 billion, reflecting a burst of activity as investors reacted to macro-driven volatility and general uncertainty in crypto markets.
Since bottoming out, Dogecoin has seen a slight recovery but remains range-bound between $0.202 and $0.206, signaling indecision. While some short-term traders interpret this as consolidation, others are eyeing the formation of a potential double-bottom pattern—a classic reversal setup that could pave the way for a move back toward $0.25, provided DOGE can clear the key resistance at $0.217.
So far, that resistance has held firm, even as DOGE tested multiple support levels during the overnight crash. A brief uptick between 09:43 and 09:56 brought the price to $0.205, though the move came on weak volume, suggesting a lack of conviction among buyers.
Derivatives markets suggest a buildup in positioning. Open interest in DOGE futures rose 2.89% to $2.71 billion, indicating traders are bracing for further price action—though sentiment remains split on the direction.
Key Technical Takeaways:
- DOGE fell 10.6% from $0.226 to $0.202, with the steepest decline happening at midnight.
- Volume spiked significantly during the sell-off, reinforcing the intensity of the move.
- Price is consolidating between $0.202 and $0.206, with resistance at $0.217.
- A double-bottom structure may be forming, hinting at a possible bullish reversal.
- Open interest climbed nearly 3%, suggesting traders are preparing for heightened volatility.
Dogecoin’s next move may depend on whether it can build enough momentum to break resistance—or whether sellers step in to push the meme coin to new local lows. For now, the market waits.
