162mln DOGE inflow raises alarms – Can Dogecoin’s wedge pattern hold?

Key Takeaways

Why does the 162M DOGE inflow matter now?

It increases sell-side pressure while Dogecoin trades near $0.1518, where buyers previously stopped deeper drops.

What signals should DOGE traders watch next?

Wedge resistance near $0.1819, Taker Buy CVD strength, and rising Open Interest that often precedes volatility.

Dogecoin faced significant pressure after a massive 162 million DOGE inflow worth $24.83 million moved into Robinhood, adding sharp short-term liquidity risk. 

This kind of inflow usually signals that sellers may prepare for increased activity, especially when it arrives during a tightening structure. 

However, Dogecoin [DOGE] held above the $0.1518 support, and buyers continue to slow every attempt at deeper weakness. 

Even though the inflow signals downside pressure, the market shows mixed reactions across other indicators. 

If sellers capitalise on this supply, DOGE may face a sharper local reaction in the coming sessions.

Is Dogecoin preparing for a breakout?

Dogecoin traded inside a descending wedge, with price compressing between the $0.1518 support and the $0.1819 rejection area.

Buyers defended the wedge’s lower boundary, reducing downside momentum despite persistent resistance at upper levels. Even so, DOGE struggled to clear overhead pressure, which created slow movement near the wedge apex.

By contrast, each rejection grew weaker, hinting at fading bearish strength as compression tightened.

The RSI at 40 stayed weak yet stable, indicating reduced bearish momentum as DOGE approached a volatility point. On top of that, a clean break above wedge resistance could open a move toward $0.2150, while a breakdown would invite $0.1400.

If compression continued, DOGE could deliver a sharp volatility spike soon.

Source: TradingView

Are buyers still steering the flow?

Taker Buy CVD stayed firmly on the bullish side, showing clear buyer aggression despite the massive 162 million DOGE inflow. 

Although large inflows usually amplified sell pressure, CVD strength signaled buyers absorbed orders across key zones.

However, liquidity still leaned bearish because such transfers often preceded stronger downside attempts. Even so, the CVD slope showed no weakening, which signals that buyers still control immediate flow behavior.

Besides, this dynamic supported the wedge structure and reduced the risk of an immediate breakdown below $0.1518. 

If CVD strength continues, sellers may struggle to trigger a clean downward push despite the heavy supply entering the market.

Source: CryptoQuant

Open Interest rises as traders position early

Open Interest climbed 4.10% to $1.69 billion, signaling a notable rise in speculative participation ahead of a possible breakout. 

Although OI expansion alone does not determine direction, it reflects growing anticipation around DOGE’s tightening structure. 

However, rising OI during wedge compression often precedes strong volatility as both sides build positions. Even so, leverage remains controlled enough to prevent imbalanced liquidation clusters. 

If traders continue building exposure at this pace, DOGE may experience a sharp move as soon as the price interacts with the wedge boundary again.

Source: CoinGlass

Liquidations lean against shorts

Liquidation data showed shorts taking $406K in losses against only $14K for longs, revealing strong buyer defense.

This imbalance did not guarantee upside continuation, but it showed sellers failed to crack $0.1518 even after the inflow. However, inflow-driven supply still created openings for renewed bearish attempts.

Even so, repeated short liquidations inside a tightening wedge often hinted at waning bearish pressure.

Bulls continued defending lower levels, preventing a clean follow-through from sellers. If this defense held, DOGE could stabilize long enough to retest $0.1819.

Source: CoinGlass

To conclude, Dogecoin now sat at a decisive moment where a massive 162M DOGE inflow, a tightening wedge, strong CVD dominance, rising OI, and short-leaning liquidations collide. 

Although inflows increase short-term risk, buyers continue defending key levels and absorbing sell pressure. If this balance persisted, DOGE might attempt an upside reaction rather than slide toward deeper correction levels.