In the latest trading session, Dogecoin (DOGE) experienced significant volatility, plunging from $0.27 to $0.25 during the early hours of September 22. This sudden downturn occurred as institutional investors executed large sell orders, pushing the trading volume to an impressive 2.15 billion tokens—far exceeding the typical daily average of 344.8 million.
As a result of this overnight selloff, DOGE has established new support and resistance levels, with the cryptocurrency now stabilizing around the $0.25 mark. Traders are closely monitoring the situation to determine whether the asset can recover or if further declines are on the horizon.
Over a 24-hour period ending earlier today, DOGE saw a decline of approximately 7%, illustrating the impact of heavy liquidations in the market. The midnight trading session witnessed a drastic change as the price fell from $0.26 to $0.25, fueled by high selling volumes which suggest considerable institutional activity.
Technical analysts have noted a “1-2 pattern” formation in DOGE’s price action. Historically, such patterns have often preceded upward movements, particularly breakouts beyond the $0.28–$0.30 range. This technical setup has garnered the attention of many traders, who are analyzing its potential implications for future price trends.
The range of DOGE during this recent selloff spanned approximately $0.02, showcasing an 8% fluctuation between its peak and trough. Resistance has become solidly established near the $0.27 mark, with the price facing multiple setbacks at this level. On the other hand, the support around $0.25 has held firm, as recovery attempts have kept DOGE trading above this critical threshold.
During the last hour of trading from 01:14 to 02:13, DOGE showed signs of accumulation, moving within a narrow channel of $0.25 to $0.25. Noteworthy spikes in price were recorded at 01:25 and 02:03, suggesting renewed interest and potential buying pressure emerging from lower price levels.
From a technical perspective, the unprecedented trading volume during the midnight selloff has confirmed the growing involvement of institutional players. $0.25 now stands as a key support level; a failure to maintain this position could lead to even lower price targets, with $0.23 emerging as the next significant level of interest. Conversely, if buying momentum resumes, traders will be looking at the resistance levels at $0.27 and subsequent tests near $0.28–$0.30.
Market participants are particularly focused on whether $0.25 can hold as a reliable support level following the extensive liquidation activity. Additionally, they will be watching institutional trading behavior around the pivotal $0.28–$0.30 resistance range, especially if a recovery gains traction. The next few trading sessions will be crucial in assessing whether accumulation or further distribution is likely to dominate the market.
Broader market sentiment, influenced by delays in exchange-traded fund (ETF) approvals and ongoing regulatory uncertainties, will also play a significant role in shaping DOGE’s price trajectory moving forward. Traders remain vigilant as they navigate through the implications of current events and technical patterns in the crypto landscape.
