Dogecoin loses $0.13 floor as derivatives positioning signals bigger swings ahead

Dogecoin loses $0.13 floor as derivatives positioning signals bigger swings ahead The $0.13 level is crucial; if Dogecoin can reclaim it, a short-covering bounce is possible, but failure may lead to further declines. What to know: Dogecoin fell below the $0.13 level amid heavy spot selling and increased derivatives activity, indicating traders expect more volatility. Futures volume for Dogecoin surged 53,000% to $260 million, reflecting rising volatility expectations despite a weakening spot price. The $0.13 level is crucial; if Dogecoin can reclaim it, a short-covering bounce is possible, but failure may lead to further declines. Dogecoin slipped under the $0.13 level Tuesday as heavy spot selling coincided with a sharp jump in derivatives activity, suggesting traders are positioning for wider swings rather than an immediate rebound. (CoinDesk Data) News background BitMEX reported Dogecoin futures volume surging 53,000% to $260 million as traders ramped up exposure into the move, a sign that volatility expectations are rising even as spot price weakens. The burst in derivatives turnover came alongside a heavy spot selloff that pushed DOGE through the $0.13 psychological floor, keeping the meme-coin complex under pressure while broader crypto markets remained uneven. See all newsletters The rise in futures activity also comes as traders continue to use meme coins as high-beta expressions of sentiment, making DOGE more sensitive to positioning shifts and liquidity pockets than many large-cap tokens. That dynamic tends to amplify moves once key levels break, particularly around round-number supports like $0.13. Technical analysis DOGE broke below $0.1300 after sellers pressed the market during U.S. hours, with the key confirmation coming at 16:00 on Dec. 23 when volume hit 639 million tokens, about 101% above the session average. That spike marked a clear change in flow: buyers that had previously defended $0.13 stepped back, and the level flipped from support into overhead supply. On the intraday chart, selling picked up again from around 01:41, with price slicing through interim supports at $0.1295 and $0.1292. The structure now resembles a descending channel, with DOGE leaning toward the lower boundary as it trades below short-term moving averages. That typically keeps rallies shallow until the market can reclaim the broken pivot. Price action summary DOGE fell 2.3% from $0.1323 to $0.1292 over 24 hours The $0.1300 floor broke on the heaviest spot volume of the session Price steadied near $0.1290 late as volume cooled sharply from peak levels The intraday range widened to $0.0047 (about 3.6%), signaling growing volatility What traders should know $0.13 is now the level that matters. If DOGE can reclaim and hold it, the move looks more like a flush-and-reset and could trigger a short-covering bounce back toward $0.1320. If it fails to retake $0.13, the market is likely to probe the next demand cluster around $0.1285-$0.1280, where buyers may attempt another defense. The outsized jump in futures volume suggests traders are bracing for continued volatility rather than a quiet drift. That can cut both ways: it increases the odds of sharp squeezes, but it also means breaks...

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