DOGE big dump 10%! Analysts: volume is still soaring, may Rebound to the 0.17 USD key support level.

DOGE has experienced a significant fall in the past 24 hours, with the price dropping by 10%, briefly reporting around $0.23 on September 23, attracting widespread market follow. Despite the successful launch of the first DOGE ETF and increased institutional participation, this top meme coin has still failed to break through the key resistance level of $0.28, and technical indicators suggest it may face further pullback risks.

DOGE experiences a strong pullback, with the market's leverage ratio being too high leading to massive liquidations

(Source: Coinglass)

Against the backdrop of a strong adjustment in the entire cryptocurrency market, the price of DOGE has suffered a heavy fall. This drop occurred after the Federal Reserve announced its first interest rate cut of 25 basis points this year. Although the market initially reacted positively, investors seem to have quickly shifted to profit-taking mode.

"This is a typical 'sell the news' behavior," said a cryptocurrency market analyst. "The interest rate cut news has been fully digested by the market, and investors are now more focused on actual economic data and the future direction of monetary policy."

In the past 24 hours, the liquidation amount of cryptocurrency bulls soared to the highest record in 6 months, exceeding $1.6 billion. This astonishing figure reveals the problem of excessive market leverage, indicating that investor sentiment may have become overly optimistic.

"When the liquidation volume reaches this level, it usually means that the market needs to rebalance," explained a trading strategist. "This adjustment, although painful, is necessary for the long-term healthy development of the market."

First DOGE ETF Launched: A Milestone for Institutional Adoption

Despite the price fall, the DOGE ecosystem continues to have significant positive developments. Last week, the first exchange-traded fund (ETF) linked to DOGE — REX-Osprey DOGE ETF (DOJE) — was successfully listed in the United States, accumulating $8.7 million in assets just two days after its listing, and has now surpassed $10 million.

Although it pales in comparison to the $300 million attracted by the first week of the Solana ETF, not to mention the massive inflows into Bitcoin and Ethereum ETFs, this development is still regarded as an important milestone for the shitcoin market.

"The launch of the DOGE ETF is significant as it provides traditional investors with a compliant and low-threshold way to participate," said a fintech expert. "Although the initial funding scale is not large, it has opened the door for institutional funds to enter the shitcoin market."

It is worth noting that just a week ago, a company named CleanCore injected 100 million DOGE tokens into its treasury, increasing its holdings to over 600 million, which is valued at approximately 14.3 million USD at current prices. This indicates that corporate interest in DOGE is growing.

Technical Analysis: Key Support Levels and Possible Price Trends

(Source: Trading View)

From a technical perspective, the level of $0.285 has once again become a solid resistance for DOGE, marking the third time this coin has strongly pulled back from this level. This repeated testing without a breakthrough is typically seen as a bearish signal.

Currently, the market focus is shifting to the 200-day Exponential Moving Average (EMA), which could become the next key support area for DOGE. Technical analysts warn that if this critical line cannot be held, DOGE may experience a more severe pullback.

"The 200-day EMA is an important indicator for determining long-term trends," explained a seasoned chart analyst, "If DOGE falls below this level, it could trigger a larger-scale sell-off, pushing the price towards the trendline support around $0.17."

The Relative Strength Index (RSI) also indicates that DOGE needs a breather, as the oscillating indicator had previously risen to overbought levels. The RSI has currently fallen below the 14-day moving average, which is typically viewed as a short-term sell signal.

Surge in Trading Volume: Market Divergence or Buying Opportunity?

Despite the price fall, the trading volume of DOGE has seen significant growth, which has led to different interpretations from market analysts.

"A surge in trading volume usually has two interpretations: either it is panic selling, or smart money is actively buying at low levels," said a cryptocurrency researcher. "Given the increased institutional participation and improvements in long-term fundamentals, this could be a buying opportunity."

Another viewpoint holds that the increase in trading volume reflects the growing divergence among market participants regarding the short-term prospects of DOGE. "When the price falls while trading volume rises, it may indicate that the market is undergoing a significant washout process," a market strategist noted.

Long-term Outlook and Investment Considerations

Despite facing adjustment pressure in the short term, the long-term outlook for DOGE is still supported by various factors. The low interest rate environment, government policies supporting cryptocurrencies, and the growing interest from institutional and corporate investors together provide potential upward momentum for DOGE.

"If DOGE does indeed pull back to the trendline support around $0.17, considering the current macro environment and the increase in institutional participation, this could provide an excellent buying opportunity," suggested a portfolio manager.

However, investors should also keep in mind that the volatility of the meme coin market is usually higher than that of other crypto assets. Today's big dump serves as another reminder to investors that short-term gains can vanish in just a few hours.

"For DOGE investors, a long-term perspective and risk management are crucial," emphasized a financial advisor. "Do not invest more than you can afford to lose, and consider adopting a dollar-cost averaging strategy to mitigate the impact of price volatility."

As the market continues to digest the impact of the Federal Reserve's interest rate cuts and expectations for another cut next month, the price trend of DOGE will depend on broader market sentiment and developments specific to meme coins.