Dogecoin Plunges 5%, Triggers Liquidations—But Technical Analysts Eye a Potential Rebound

In the last 24 hours, Dogecoin ($DOGE ) saw its sharpest single-day decline this month, falling nearly 5% from around $0.22 to as low as $0.20. The drop, fueled by heavy resistance and a wave of #liquidations , erased a significant portion of recent gains and dragged DOGE’s weekly performance down by over 10%.

At the time of writing, #Dogecoin’s market capitalization has slipped to $31 billion, reflecting the broader bearish sentiment sweeping across crypto markets. Despite the pullback, technical analysts and whale activity suggest that the dip may be part of a larger accumulation phase, not the start of a longer-term downtrend.

Strong Resistance at $0.23 Sends DOGE Tumbling

Dogecoin had shown signs of strength earlier in the week, testing the $0.23 level multiple times. However, each attempt was met with aggressive selling pressure, causing DOGE to lose momentum. After failing to hold its ground, a swift drop brought the price down to $0.20, marking the largest intraday loss in August.

This rejection at resistance, combined with a sudden surge in trading volume, hints at stop-loss hunting and automated sell-offs—a common phenomenon in volatile crypto markets.

#Volume Spikes and Liquidations Shake the Market

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