Dogecoin Short-Term Market Interpretation: V-Shaped Reversal Phenomenon Emerges, $0.1372 Becomes Key Support

Recently, Dogecoin experienced a very typical short-term sharp decline, which made many newcomers a bit nervous. On December 12 at 15:00 UTC, the key support level of $0.1407 was breached, and the market was immediately met with a strong wave of selling. Trading volume surged by 348%, indicating that this was not an ordinary profit-taking, but a forced liquidation of short-term funds, as large holders and short-term investors quickly exited the market, causing the price to drop rapidly.

During the decline, Dogecoin touched a low of $0.1372, at which point selling pressure began to weaken. Subsequently, trading volume gradually decreased, indicating that the selling strength was no longer strong. The price exhibited a V-shaped reversal pattern: after a rapid decline, it quickly rebounded, forming a higher low, a movement typically seen during market panic, when large holders take advantage of lower prices to buy in.

Although the overall trend for Dogecoin remains weak, the short-term downward momentum has clearly diminished. As long as the price does not drop below $0.1372, the market is expected to maintain a consolidation or slight rebound.

From the day's price performance, Dogecoin dropped from $0.1413 to $0.1376, a decline of about 2.6%, with an intraday fluctuation of 4.6%. The most intense selling occurred during the price crash phase, when trading volume soared to 1.11 billion DOGE, suppressing the buying pressure. After hitting the bottom, buyers began to take over, driving the price back up, ultimately closing near $0.1376.

In the closing phase, the price briefly fell back to $0.1372, but buyers again defended this position, reinforcing the importance of $0.1372 as a recent support level. For newcomers, this means that as long as the price holds this position, the short-term risk of decline has been somewhat alleviated, and bulls have the opportunity to initiate a slight rebound.