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2 months ago
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Resistance is building near $0.23, where profit-taking and heavy sell orders reappear.
Updated Aug 19, 2025, 5:51 a.m. Published Aug 19, 2025, 5:51 a.m.
(CoinDesk Data)
What to know:
- Dogecoin fell 4% overnight, dropping from $0.23 to $0.22 amid heavy trading volume.
- The decline was part of a broader crypto liquidation trend, influenced by U.S. inflation data.
- Institutional investors accumulated 2 billion DOGE this week, despite the price drop.
Dogecoin slid overnight, erasing gains despite heavy institutional accumulation, as $782 million in trading volume overwhelmed support levels and sent the token into correction mode.
The move came alongside broad crypto liquidations, reflecting heightened macro pressure.
News Background
• Dogecoin dropped from $0.23 to $0.22 in a 24-hour window ending August 19 at 04:00, marking a 4% decline.
• A sharp liquidation wave hit between 03:00-04:00, where volumes spiked to 782 million DOGE — nearly double the daily average.
• The decline occurred as industry-wide liquidations topped $1 billion, triggered by U.S. inflation prints beating expectations and denting Fed rate-cut hopes.
• Despite the drop, institutional buyers have accumulated 2 billion DOGE worth about $500 million this week, bringing total reported holdings to 27.6 billion.
Price Action Summary
• DOGE traded within a $0.01 band, reflecting 5% intraday volatility.
• Overnight crash drove the token to test $0.22 support, now viewed as the key level to defend.
• A late-session rebound attempt lifted prices modestly back toward $0.22, signaling demand at the lows.
• Resistance is building near $0.23, where profit-taking and heavy sell orders reappear.
Technical Analysis
• Breakdown from $0.23 invalidates prior bullish structure, with $0.22 emerging as new short-term floor.
• Volume surge of 782 million DOGE validates capitulation selling — a potential precursor to bottom formation.
• Support: $0.22 (critical), followed by $0.21 if pressure persists.
• Resistance: $0.23 (immediate), $0.25 (major breakout threshold).
• Indicators suggest mixed signals: RSI approaching oversold, but momentum remains negative.
What Traders Are Watching
• Whether institutional accumulation continues if $0.22 cracks — signaling smart money conviction or retreat.
• Broader market risk sentiment: equity weakness and macro headwinds remain the dominant driver.
• $1 billion+ in crypto liquidations highlight fragility; another macro shock could deepen downside.
• A reclaim of $0.23 would be seen as a short-term reversal trigger, otherwise $0.21 support test is likely.
Shaurya Malwa
Shaurya is the Co-Leader of the CoinDesk tokens and data team in Asia with a focus on crypto derivatives, DeFi, market microstructure, and protocol analysis.
Shaurya holds over $1,000 in BTC, ETH, SOL, AVAX, SUSHI, CRV, NEAR, YFI, YFII, SHIB, DOGE, USDT, USDC, BNB, MANA, MLN, LINK, XMR, ALGO, VET, CAKE, AAVE, COMP, ROOK, TRX, SNX, RUNE, FTM, ZIL, KSM, ENJ, CKB, JOE, GHST, PERP, BTRFLY, OHM, BANANA, ROME, BURGER, SPIRIT, and ORCA.
He provides over $1,000 to liquidity pools on Compound, Curve, SushiSwap, PancakeSwap, BurgerSwap, Orca, AnySwap, SpiritSwap, Rook Protocol, Yearn Finance, Synthetix, Harvest, Redacted Cartel, OlympusDAO, Rome, Trader Joe, and SUN.
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What to know:
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- The token experienced nearly 4% intraday volatility, with a bullish surge pushing prices to $3.10 before momentum faded.
- Key resistance at $3.09 and support at $3.00 highlight potential for either a retest of higher levels or a deeper correction.
