title: DOGE, the Largest Meme Cryptocurrency, Records a 36% Surge

DOGE, the largest meme cryptocurrency, records a 36% surge during Tuesday's U.S. trading session. The surge in selling pressure continues to follow broader market panic

Dogecoin (CRYPTO: DOGE) prices fell sharply on Tuesday as part of the broader cryptocurrency market downturn. The surge in selling pressure continues to follow broader market panic amid the escalating trade war between the United States and other nations.

What Happened: DOGE, the largest meme cryptocurrency, records a 36% surge during Tuesday’s U.S. trading session. The price now teeters at five-month support, signaling the risk of another breakdown and prolonged correction ahead.

By press time, the Dogecoin price trades at $0.143 and holds a market capitalization of $21.4 billion. Amid today’s downtick, the coin price teases a bearish breakdown from the five-month $0.143 that coincides with the 78.6% Fibonacci retracement level.

While the downfall to this FIB is still considered a buyer’s strength, it may offer a last line of defense. Therefore, a potential breakdown will accelerate selling pressure and change the market dynamic from a correction to a downtrend.

Following the price fall, the DOGE Futures Open Interest has plunged from $5.42 billion to $1.34 billion within three months, registering a 75.68% loss.

This dramatic drop in open interest suggests a sharp decline in trader participation and speculative appetite around Dogecoin. It indicates widespread position closures—either due to liquidations or lack of confidence—signaling a weakening trend momentum.

Dogecoin Price Faces 30% Correction Amid Channel Pattern Formation:Over the past five months, the Dogecoin price correction has been resonating strictly within the two parallel trendlines of channel pattern formation. If the aforementioned breakdown of $0.143 supports offers a daily candle closing, the sellers could drive a nearly 33% fall to test the lower trendline of the channel pattern at the $0.098 floor.

The previous reversals from the bottom support have pushed the asset with a 42% to 65% rally, indicating a crucial accumulation zone for buyers.

As no trend remains the same in financial assets, the DOGE price could rebound higher with recuperated bullish momentum and challenge the resistance trendline.See More: Top 5 Crypto Influencers to Follow in 2023