Dogecoin Drops Below $0.13 & The Event Is Drawing Institutional Attention

The most recent high-volume selloff has caused Dogecoin to lose its forward momentum, which everyone was viewing as a positive sign for the memecoin. The asset has dropped below the $0.13 mark and is currently trading at the $0.12989 zone. This situation has developed panic among investors as they are reassessing near-term strategies. As the crypto market witnessed a broader selloff sentiment in the last 24 hours, DOGE fell nearly 5.5% from the previous price of $0.1367 to the $0.12989 zone.

As memecoins are bearing the brunt of the broader crypto crash, DOGE’s selloff carries significant implications as the leading memecoin. Analysts assume that the loss of general risk appetite in higher-beta assets like DOGE has more to do with their structural weakness, and the institutional attention has turned towards DOGE amidst this crash.

The Background Of The News

With a low forming near the $0.1266 zone, DOGE has started showing signs of a weakening market and high volatility. These are signalling towards a bear run for DOGE in the near future. Analysts have pointed out that there are many factors that caused this drawdown, with the selloff fundamentally damaging the liquidity.

The rather worrying aspect of this fall is that DOGE was recently in its consolidation phase and was range-bound for the long-term outlook. However, the recent dip has caused analysts to rethink their forecasts on DOGE’s future performance. This breakdown amidst the consolidation phase means that DOGE has clearly lost its short-term trend support.

The selloff amplified this situation as fresh tokens, nearly 1.63 billion DOGE, flowed into the market, weakening DOGE’s upward trend. This volume surge, which was roughly 267% higher than the average, means that the drop that DOGE experienced was mostly due to large flows. This sudden bearish outburst indicates that DOGE’s price is no longer following a passive path.

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Institutional Attention

DOGE’s recent fall has attracted institutional attention as capital-heavy investors are on the lookout for the perfect entry spot. With prices dropping over 5.5%, most institutional analysts are following a bear market scenario.

If this downside trajectory lengthens, institutional investors may yet again pause for a brief period to confirm the asset has entered a consolidation phase before making huge prices, which could cause price spikes.

From what could be sourced from industry experts, it has become obvious that the institutional players are waiting for the right price point to make an entry into the DOGE market. If this is factually correct, DOGE prices may skyrocket in the near term once these institutional investors kick in. For the time being, DOGE’s price is in a weak and vulnerable state where volume has the potential to take the asset further down.

Technical Analysis Of Dogecoin’s Fall

As DOGE made an epic fall through multiple support levels, there were no meaningful pauses in between. This is a worrying aspect as this sheer drop indicates that DOGE has exhausted most of its potential for an upside.

If DOGE’s fall was more passive with multiple retests of support levels, there could be a possible explanation that would hold a chance for a positive outlook. It is not just the fall, but rather the intensity of it, that has earned the fall the title of being catastrophic.

As reports from technical analysis of the fall are coming in, there are clear indications as to why this fall had such an impact on DOGE’s overall strength. The moment prices dropped below the $0.1320 support level, there was little to no bid depth on the order book. The hopes of a rebound were shattered by the failure to recover the $0.13 level. This was at a time when the momentum indicators were showing a reduced drag towards the bottom point.

Upon closer inspection of the structural strength of DOGE, it has become obvious that a clear shift is taking place. DOGE’s price perspective is changing into downside compression from the earlier range compression. Unless the price returns above the earlier support levels, the hopes of a rebound are once again on the verge of shattering.

DOGE’s Price Action Summary

Since DOGE has already reached session lows are near as $0.12837, the price may be looking towards a stabilization point. The liquidation pressure may be fading as the candles are showing reduced volume and shorter extensions towards the downside trajectory. This is indicative of the fading liquidation pressure that has been dominating the market.

With sellers circling the $0.13 zone, there is much selling pressure to be overcome if DOGE needs to reclaim this level. As of now, the asset is facing critical resistance at the $0.13 level. This could mean that in the short-term future, the chances of an upside are very limited.

As far as this short-term direction is concerned, the investors are on the lookout as to whether DOGE can stay within the $0.1290 to $0.1280 zone. If prices escape below this zone, then the next key support level is located at the $0.1250 mark. Analysing the volume behaviour patiently is the best way to stay safe in this turbulent market condition. It is very important to confirm whether DOGE is entering a consolidation phase or a distribution phase. That said, the best option is to steer clear of speculative opens.

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