The memecoin sector is clearly showing its “speculative” nature once again.
After starting 2026 strong with roughly $10 billion in market cap gains, it has already given back about 85% of those gains in less than a week. This highlights the classic “high-risk, high-reward” pattern of these assets.
Naturally, Dogecoin [DOGE] hasn’t been spared. In fact, it is down 14% from its yearly high of $0.15, shedding $5 billion in market cap. This raises the question – Is DOGE’s drop simply a part of a broader market pullback?
Source: TradingView (DOGE/USDT)
Looking at the technicals, there’s a clear divergence.
Notably, the $0.15-level stands out as strong resistance. Since losing it back in mid-November 2025, DOGE has tried and failed to break through four times, with the most recent attempt happening just 10 days ago.
After that, the memecoin saw six straight days of red candles, dropping by nearly 15%. On the flip side, DOGE bounced back quickly, gaining about 9%. So, the big question is – Does this make $0.13 a reliable support level?
$500 million DOGE outflow sparks conviction test
Dogecoin’s current positioning is putting smart money to the test.
Earlier, on 14 January, DOGE tested the $0.15-level, only to pull back 7% to $0.13. Technically, if smart money steps in with its classic “buy the dip” strategy, this could determine Dogecoin’s next move.
However, data from WhaleAlerts hinted otherwise. Specifically, the tracker flagged a wallet transferring a massive 500 million DOGE coins to Binance, clearly showing a lack of conviction in a breakout from the chop.
Source: X
More importantly, this also highlights a potential feedback loop.
As AMBCrypto pointed out, DOGE hasn’t broken out of its sideways price action since mid-November, despite the early January rally that pushed it up 20%. And yet, failing to clear resistance remains a key concern.
In this context, the recent whale outflows don’t look like a “coincidence.”
Instead, with whales selling near key resistances and DOGE bouncing around in choppy price action, it’s a textbook loop where smart money takes advantage of market FUD, keeping the price trapped. Hence, a breakout will be unlikely unless buyers step in with conviction.
Final Thoughts
- Despite early January gains, DOGE has repeatedly failed to break $0.15.
- A $500 million outflow to Binance highlights smart money profiting from market FUD.