Dogecoin slid overnight, erasing gains despite substantial institutional accumulation, as $782 million in trading volume overwhelmed support levels and pushed the token into correction mode. This shift came amidst a broader trend of crypto liquidations, reflecting increased macroeconomic pressures.

Key Insights:

• Dogecoin dropped from $0.23 to $0.22 in a 24-hour window ending on August 19, marking a 4% decline.
• A sharp liquidation wave occurred between 03:00-04:00, where volumes surged to 782 million DOGE, nearly double the daily average.
• The decline transpired as industry-wide liquidations topped $1 billion, spurred by U.S. inflation data exceeding expectations and diminishing hopes for Fed rate cuts.
• Even as prices fell, institutional buyers accumulated 2 billion DOGE worth about $500 million this week, increasing their total holdings to 27.6 billion.

Price Action Summary:

• DOGE traded within a $0.01 range, reflecting 5% intraday volatility.
• The overnight crash led to a test of $0.22 support, now viewed as the critical level to defend.
• A later session rebound attempt raised prices modestly back towards $0.22, indicating demand at lower levels.
• Resistance is accumulating near $0.23, coinciding with potential profit-taking and heavy sell orders reappearing.

Technical Analysis:

• A breakdown below $0.23 invalidated previous bullish sentiment, with $0.22 emerging as a new short-term floor.
• The surge in trading volume to 782 million DOGE suggests capitulation selling, which may indicate a potential bottom formation.
• Critical support is at $0.22, followed by $0.21 if selling pressure persists, while immediate resistance stands at $0.23, with $0.25 as the major breakout threshold.
• Current indicators are mixed: RSI is approaching oversold status, but momentum remains negative.

Trader Focus:

• The critical question remains whether institutional buying will persist if $0.22 is breached, signaling institutional conviction or retreat.
• Broad market risk sentiment is dominated by weakness in equities and macroeconomic headwinds.
• Over $1 billion in crypto liquidations underscore fragility; another macro shock could worsen trends.
• A reclaim of $0.23 would signify a short-term reversal, failing which testing $0.21 support becomes likely.