Dogecoin fell below the 0.13 level on Tuesday as more people sold the coin in the spot market. At the same time more traders were active in futures showing that many are expecting bigger price swings in the near future. The 0.13 level is important because if Dogecoin can move back above it a short covering bounce could happen. But if it cannot hold above this level the price may fall further.
The price drop came during heavy trading hours and the key moment was in the afternoon when the number of coins traded was much higher than usual. This showed that buyers who had been defending the 0.13 level stepped back. As a result this level changed from support to a point where sellers are now more likely to appear. On the chart the price broke through smaller supports at 0.1295 and 0.1292. The market now looks like it is moving down in a channel with the coin trading below short term averages. This usually means any bounce will be small until the price can move back above the broken support.
Over 24 hours Dogecoin fell from 0.1323 to 0.1292. The 0.13 level broke on heavy trading and the price later steadied near 0.1290 as activity slowed down. The difference between the high and low during the day was 0.0047 showing that the market is more volatile.
Traders should watch the 0.13 level closely. If Dogecoin can reclaim it and stay above the price may rise to around 0.1320. If it cannot hold 0.13 the next support area is between 0.1285 and 0.1280. Many buyers may try to defend the coin at this level. The large increase in futures trading shows that traders expect more price movement. This can cause sudden rises but also fast falls if stops are hit and there are fewer buyers or sellers.
Overall Dogecoin is under pressure and the market is sensitive to small changes. The next few sessions will show if buyers can push it back above 0.13 or if the coin will continue to move lower. Traders should be ready for sharp moves in either direction as the market reacts to volume and positioning.
