Market Overview: DOGEJPY Sees Sharp Correction Amid Rising Volatility

Summary
• DOGEJPY broke below key support at 22.20, closing near 21.84 with bearish confirmation.
• Momentum weakened as RSI dipped into oversold territory, hinting at potential rebounds.
• Volatility expanded in late ET hours, with volume surging as price approached 21.80.
• A large bearish engulfing pattern formed early morning ET, reinforcing downward bias.

Dogecoin/Yen (DOGEJPY) opened at 22.48 on 2026-01-15 at 12:00 ET, reaching a high of 22.58 before closing at 21.84 on 2026-01-16 at 12:00 ET, with a low of 21.74 during the session. Total traded volume reached approximately 3,243,159 units, while notional turnover hit 72.4 million yen.

Structure & Formations

Price action unfolded a sharp bearish reversal from 22.58, with a large engulfing candle forming at 22.54–22.35 on 2026-01-15 18:00 ET, followed by a breakdown below 22.20. A cluster of rejection candles emerged near 22.10–22.15, forming potential short-term support. A doji appeared at 22.12 on 2026-01-15 20:45 ET, suggesting indecision.

Moving Averages and Fibonacci Retracements

On the 5-minute chart, price closed below both 20 and 50 SMA, reinforcing a bearish bias. Daily MAs were not available due to limited data, but Fibonacci retracement levels for the 22.37–22.58 swing showed 22.46 (38.2%) as a minor resistance and 22.40 (61.8%) as a key support. Price closed near 21.84, below 61.8% of the prior bullish swing.

Momentum and Volatility

RSI fell sharply to 28, indicating oversold conditions and possible near-term rebounds. MACD turned negative with a bearish crossover, confirming weakening momentum. Volatility expanded in the early hours of 2026-01-16, with Bollinger Bands widening as price moved lower. Price closed near the lower band, increasing the likelihood of a bounce or a test of the next support level.

Volume and Turnover

Volume increased significantly during the breakdown from 22.20, with a notable spike at 21.82–21.84. Turnover confirmed this move, with heavy selling observed between 21.90 and 21.80. A divergence was noted in the final hour: while price dropped to 21.74, volume waned slightly, suggesting diminishing conviction in the bearish move.

Market appears to be testing the 21.80–21.76 support cluster. A bounce could target 22.00, but a break below 21.74 may open the door to 21.50. Investors should watch for confirmation at 21.80 and monitor volume behavior for signs of exhaustion or renewed selling.