Market Overview: DOGEUSDT Faces Sharp Correction as Sellers Take Control

Summary
• DOGEUSDT broke key support and formed a bearish engulfing pattern near $0.1340.
• Volatility expanded significantly, with price falling below 20-period MA for most of the day.
• RSI entered oversold territory, but volume failed to confirm a potential rebound.
• Bollinger Bands widened post-15:00 ET as selling pressure intensified.
• Fibonacci 61.8% level at $0.1330 may provide near-term support if bullish momentum returns.

At 12:00 ET on 2025-12-15, Dogecoin/Tether (DOGEUSDT) opened at $0.13545, hitting a high of $0.13748 before falling to a low of $0.13021 and closing at $0.1309. Total 24-hour volume was 564,089,745.0, with turnover reaching $73,375,836.00.

Structure & Moving Averages

The price of DOGEUSDT broke below critical support at $0.1340, confirming a bearish shift. A bearish engulfing pattern formed at this level, indicating strong distribution. The 20-period moving average failed to hold, and the 50-period MA on the 5-min chart turned downward. . On the daily chart, the 50/100/200 MA remain broadly aligned but failed to act as a floor as price dropped sharply.

Momentum and Oscillators

The RSI collapsed to oversold territory below 30, hinting at potential short-term stabilization. However, volume during this phase remained muted, suggesting a lack of conviction in any rebound. The MACD crossed into negative territory, with bearish divergence emerging between price and momentum.

Volatility and Bollinger Bands

Volatility expanded sharply after 15:00 ET as price dropped below the lower Bollinger Band. The bands had been in a contraction phase prior to the breakdown, signaling an increase in uncertainty. The wide range candle at $0.13189–$0.13021 reflects aggressive selling, particularly in the final hour of the 24-hour window.

Volume and Turnover Signals

Volume spiked over 60 million contracts at $0.13272–$0.13021, indicating significant distribution at the bottom of the move. However, turnover failed to confirm a strong reversal, with volume tapering off after the lows. This suggests the market may still be in a state of indecision.

Fibonacci Retracement Levels

The drop from $0.13748 to $0.13021 represents a key 61.8% Fibonacci retracement level at $0.1330, which could now act as a magnet for potential bounces. Short-term traders should monitor this level closely, as a failure to hold it could extend the decline further.

The market appears to be in a transitional phase, with sellers in control and bears eyeing further downside. While technical indicators suggest a possible rebound from the $0.1330 level, a strong follow-through in volume and price is needed to confirm any reversal. Investors should remain cautious and monitor for a potential break below $0.1300, which could trigger additional selling pressure.