Dogecoin has shown remarkable resilience following a tumultuous trading session on Friday, where it experienced a significant decline due to renewed market anxiety tied to U.S.–China tariff developments. The meme-inspired cryptocurrency dipped as low as $0.176 before recovering to trade within a tight range of $0.18 to $0.19, as buyers stepped in to defend crucial support levels.
Market Response to Tariff Announcement
The announcement of a 100% tariff on Chinese imports by the Trump administration sent shockwaves through the broader digital asset market, leading to a swift selloff in risk assets during Asian trading hours. Dogecoin was quick to react, suffering a 7% intraday swing as traders sought to minimize their exposure amid the uncertainty.
In the early hours of trading, DOGE fell sharply from $0.188 to $0.176 in a matter of minutes, with trading volumes exceeding 1.4 billion tokens. This rapid decline was largely attributed to major holders liquidating their positions, with reports indicating that approximately 360 million DOGE, valued at around $74 million, changed hands. However, the market found a semblance of stability as liquidity providers and buyers entered the fray around the $0.18 mark.
Technical Indicators Suggest Stability
Technical analysis indicates that Dogecoin has established a short-term base between $0.175 and $0.180, where notable buying interest emerged. Analysts observed the formation of higher lows throughout the afternoon, suggesting that the market was striving to stabilize. By the end of the day, DOGE was trading near $0.186, following several unsuccessful attempts to breach the resistance zone between $0.188 and $0.189.
Momentum indicators reflected a rather neutral setup, with the relative strength index hovering around 49, indicating a balance between buyers and sellers. Additionally, the MACD lines flattened, confirming a lack of strong directional movement. Trading volumes also tapered off late in the session, signaling that market participants were pausing to assess the situation before making further moves.
Whale Activity and Market Sentiment
Whale activity remained a focal point after the reported liquidation of $74 million in DOGE. Data indicated that following the initial selloff, wallets belonging to long-term investors began to accumulate DOGE once again, suggesting a renewed confidence that appealed to short-term traders monitoring the formation of a support base around $0.18.
In the derivatives market, signals were mixed. Funding rates returned to normal after a brief spike in short interest, indicating a shift toward neutral sentiment. Analysts noted that this stabilization in funding rates suggested a cooling off of aggressive bearish positions, which could encourage a more supportive trading environment.
Traders Eye Breakout or New Macro Signals
As Dogecoin’s price consolidates, traders are closely watching the $0.18 support level and the $0.19 resistance band for indications of the next significant move. A confirmed breakout above $0.19 could pave the way towards the $0.20 to $0.21 range, while a failure to maintain current support levels could lead to a retest of $0.175.
Market participants are also keeping an eye on external factors that could influence trading over the weekend. Potential shifts in whale activity, upcoming comments from the U.S. Federal Reserve regarding trade-related inflation risks, and speculation surrounding crypto ETF flows are all on the radar. Some traders anticipate a renewed interest in meme-based assets should risk sentiment improve in the coming week.
As of early Saturday, Dogecoin remains positioned near the $0.186 mark, trading within a narrow range. The market is now poised for fresh economic or policy cues that could determine whether this support base can lead to a sustained rebound.
