Dogecoin tumbled through major support zones on Tuesday, with heavy whale distribution and surging volume confirming institutional-led selling pressure as traders struggled to defend the $0.16 handle.News BackgroundDOGE fell 5% to $0.16, breaking below critical support after an early-session failure to hold the $0.18 psychological level. The token traded within a volatile $0.0185 range, with selling pressure intensifying throughout the day.The steepest declines hit at 20:00 GMT, when trading volume spiked to 2.05 billion tokens — 94% above the daily average — as price sliced through the $0.1590 floor. The move reflected broad institutional distribution, corroborated by on-chain data showing $440 million in DOGE outflows from large-holder wallets.DOGE reached a session low of $0.1528 before stabilizing near $0.1550, where dip-buying emerged. Recovery attempts were capped at $0.1700, confirming resistance near prior support zones.Price Action SummaryA sharp V-shaped rebound appeared on short-term charts following the breakdown. However, the bounce failed to sustain momentum, with price consolidating below $0.1620 as overhead resistance from the breakdown level held firm.The late-session stabilization indicated temporary exhaustion among sellers but did not yet signal trend reversal. Volume skew remained bearish, with selling activity still dominating aggregate flow data across major exchanges.Technical AnalysisDOGE continues to trade in a lower-highs, lower-lows formation, maintaining clear bearish momentum within a broader descending structure. The brief oversold rebound remains corrective rather than directional, with the overall pattern resembling a classic breakdown–pause sequence typical of distribution cycles.Momentum oscillators remain negative across hourly timeframes, while the daily RSI has yet to recover from sub-40 levels. Traders note that structural improvement would require sustained closes above $0.1650, invalidating the existing descending pattern.What Traders Should KnowTraders are closely watching the $0.1550–$0.1555 area, which continues to act as short-term support. A breakdown below this zone would expose $0.1520–$0.1500, where deeper liquidity pools exist from prior accumulation phases.Conversely, recovery above $0.1630–$0.1650 is necessary to challenge the broken $0.1590 resistance and signal potential short-term relief. For now, intraday action suggests ongoing distribution with limited momentum for sustainable upside follow-through.
Dogecoin Falls 5% as Lower-Lows Pattern Aids Bearish Outlook
