Dogecoin continues to see a further decline on Tuesday, breaking below the $0.13 mark and now trending around $0.1279 as a result of strong spot market selling pressure, along with a sharp increase in derivative market action, as traders now appear to be preparing for increased market volatility rather than a market reversal to the upside.
The data available from the BitMEX exchange regarding the derivatives of Dogecoin highlighted that the futures volumes rose by a massive 53,000%, amounting to a total of 260 million dollars. This indicates that the volatility has increased, although the value of the spot price went down. Traders are still utilizing DOGE as a high beta sentiment indicator. This shows that the breakdown of significant psychological resistance zones unlocks further strength. Losing the value of 0.13 dollars follows the same pattern.
The decisive move below $0.1300 for DOGE occurred during US trading hours, with the resultant confirmation taking place when trading volume rose abruptly to 639 million tokens, more than twice the average trading volume during a session. This represented a clear signal that a level, previously guarded by buying support, would give way.
In the intra-day chart, the prices broke through the holding levels of $0.1295 and $0.1292. Since DOGE is currently below the shorter-term moving averages at around $0.1279, any attempts at a recovery would continue to see limited upside until it manages to recover the broken pivot point.
In the last 24 hours, Dogecoin depreciated by about 2.3 percent, although the intra-day movement expanded to 3.6 percent, indicating rising volatility. However, at the end of the day, it held at $0.1279, with the flow of volume easing.
The level of $0.13 is the crucial level to watch. Breaking back above it could spark a short-covering rally toward the area of $0.1320. Falling short of recapturing $0.13, DOGE will remain exposed to testing the regions of the $0.1280 level and below, where another defence is likely to ensue. The high levels of futures trading also suggest that anything, positive or negative, will likely transpire rapidly.
$DOGE #DOGE
