Whales moved into Dogecoin while price held a support band, increasing the chance of a modest recovery. Watch volume and key levels for confirmation.
Dogecoin fell 23% from September highs and has settled around $0.25, with daily volume easing after the sell-off. Buyers returned at lower prices, which suggests the decline found short-term support while traders wait to see if higher volume confirms a reversal.
Let’s look at what caused the Dogecoin price drop and why it seems to have found a footing.
What Caused The 23% Slide?
The 23% drop followed a broader crypto pullback led by Bitcoin, plus profit-taking after September gains. Traders sold into strength, pushing higher volume on down days and triggering short-term technical sell signals.
The move took place over about two weeks and wiped out rally gains, increasing liquidation risk for leveraged positions.
Macro risk-off reduced fresh inflows, and options expiries concentrated selling around key strikes. Traders reacted quickly to losses leading to the dip.
RECOMMENDED: Is It Worth Buying Dogecoin in 2025?
Why Price Is Steadying Now: On-Chain And Institutional Signs
On-chain data shows several mid-size wallets adding tens of millions of DOGE while exchange outflows rose, which eased immediate selling pressure.
Data providers recorded large buys and higher holdings among top addresses this month, suggesting accumulation by larger players.
These flows lower immediate downside risk if markets calm. Monitor exchange flows for continued accumulation.
RECOMMENDED: Dogecoin Price Prediction: What Could $1,000 in DOGE Be Worth in One Year?
Technical Outlook: Key Levels And Scenarios
$0.23 to $0.25 remains the main Dogecoin price support level and $0.27 to $0.30 is the key resistance zone.
The 100-day EMA sits around $0.226. A daily close above $0.27 would improve sentiment, while a failure below $0.23 could push price toward $0.18.
Pay attention to order book depth and daily volume on any breakout or failure. Don’t forget to use clear stops and modest position sizes.
RECOMMENDED: Is Dogecoin A Good Investment And How to Buy DOGE?
Conclusion
Stability plus visible accumulation raises the chance of a bounce, but traders need higher volume and a close above $0.27 or $0.30 for confirmation. Manage risk with stops below support and keep position sizes modest while watching order flows.
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