DOGE Retreats After Late-Session Reversal, Signals Short-Term Weakening
Dogecoin (DOGE) encountered profit-taking on Tuesday, forming a lower high that suggests a potential short-term shift in momentum.
The cryptocurrency briefly broke above $0.1815, supported by trading volume 96% above average, before a late-session pullback erased most intraday gains. DOGE closed at $0.1824, advancing 3.1% for the session while testing resistance near $0.184. Intraday trading ranged between $0.1769 and $0.1838, as buyers pushed toward upper channel boundaries.
A potential Bitwise spot DOGE ETF, set to launch within 20 days via automatic approval under Section 8(a) of the Securities Act, remains a bullish backdrop. However, Tuesday’s price action was largely influenced by technical trading and profit-taking flows rather than ETF-related news.
Intraday Price Dynamics
DOGE’s rally stalled around 14:00 GMT, as profit-taking drove a 1.1% pullback from $0.1842 to $0.1821 on elevated volume of 7.8 million tokens. This move briefly broke interim support near $0.1830, disrupting the ascending channel formation and signaling weakening bullish momentum.
Technical Outlook
DOGE remains supported above $0.1800, but a drop below $0.1820 could invite renewed selling. Short-term momentum indicators show signs of fatigue: RSI fell from 64 to 52, while the MACD nears convergence. Despite the reversal, buyers continue to defend key support around $0.1800.
Key Levels to Watch
- Support: $0.1800
- Resistance: $0.1835–$0.1840
- Downside risk: $0.1760 if support fails
Analysts note that while ETF speculation provides a bullish backdrop, near-term price movements are being shaped primarily by technical positioning and profit-taking from recent whale accumulation.
