TLDR
- Global tensions pushed DOGE down 7.5% from $0.176 to $0.164 in single trading session
- Analyst maintains bullish outlook with $0.6533 target representing 260% upside potential
- Double bottom formation at $0.164 suggests institutional buying interest at lower levels
- Federal Reserve policy stance creates headwinds for risk-on cryptocurrency assets
- Volume surge to 700 million units during decline shows active market participation
Market volatility struck Dogecoin hard on Tuesday as the popular memecoin tumbled 7.5% during a single trading session. The sharp decline took DOGE from $0.176 down to $0.164 before buyers emerged.
Global risk sentiment deteriorated rapidly following escalating Middle East tensions. The Israel-Iran conflict intensification triggered widespread selling across risk assets.
Dogecoin joined other cryptocurrencies in the broad-based retreat. The memecoin’s high-beta characteristics made it particularly vulnerable to the risk-off environment.
Central bank monetary policy added another layer of pressure. The Federal Reserve’s continued hawkish stance weighed heavily on speculative assets.
Interest rates are expected to remain at 4.25% to 4.50% for the foreseeable future. The central bank also continues reducing its balance sheet holdings.
These policy measures create challenging conditions for digital assets. Cryptocurrencies typically struggle when traditional safe havens become more attractive.
The most intense selling occurred between 3:00 PM and 4:00 PM Eastern time. During this hour, approximately 700 million DOGE tokens changed hands.
This massive trading volume highlighted the scale of the selloff. Market participants rushed to exit positions as global uncertainty mounted.
However, strong buying interest emerged at the $0.164 price level. This support zone prevented further downside and stabilized the market.
The buying activity at $0.164 created what analysts call a double bottom pattern. This technical formation often signals a potential price floor.
Chart Structure Supports Recovery Outlook
Market analyst Javon Marks continues to see upside potential despite the recent weakness. His technical analysis focuses on the higher lows pattern that remains in place.
Marks views the current selloff as temporary consolidation within a larger uptrend. The analyst believes this pullback creates opportunity rather than concern.
His price projections remain unchanged following the decline. The primary target sits at $0.6533, which would deliver 260% gains from current levels.
This forecast relies on Dogecoin maintaining its technical structure. The higher lows formation suggests underlying strength persists.
Historical precedent supports this bullish view according to Marks. Previous Dogecoin rallies often began after similar consolidation periods.
The analyst also maintains a longer-term target at $1.25. This ambitious projection would represent over 600% appreciation from today’s prices.
Such large moves require sustained momentum and favorable market conditions. However, Dogecoin has achieved similar percentage gains in past bull cycles.
Market Stabilization Shows Promise
After the initial panic selling, Dogecoin found its footing above $0.170. The recovery attempt lifted prices into a narrow trading range.
Price action stabilized between $0.168 and $0.171 following the support test. This consolidation suggests sellers may be exhausted near current levels.
A brief rally emerged at 1:21 AM, pushing DOGE to $0.1719. However, this advance met resistance and quickly reversed lower.
The failed breakout attempt created a descending triangle pattern. This formation shows declining highs against stable support.
Resistance now sits at $0.171 while support holds at $0.1705. The narrow range suggests a period of sideways movement may continue.
Trading activity decreased substantially after the volume spike. Recent price bars show volume below 3 million tokens per candle.
The reduced participation indicates market uncertainty about near-term direction. Traders appear to be waiting for clearer signals before committing capital.
Current data shows Dogecoin trading at $0.1712 with a 1.60% daily decline. The weekly performance shows a 13.36% drop reflecting broader market weakness.
