The Drama in Dogecoin: Sudden Crash and Subsequent Recovery

Flash Crash of 50% in Dogecoin

Dogecoin experienced a rare flash crash of 50%, dropping from $0.22 to $0.11 within minutes at 21:00 UTC on October 10, 2023. It quickly rebounded, stabilizing in the $0.19–$0.20 range.

This crash was triggered by a 100% tariff announcement made by the Trump administration, which initiated a broader wave of cryptocurrency selling. However, demand from institutional investors and ETF flows helped restore stability to Dogecoin. During this process, large investors (whales) shifted towards buying, while exchange outflows reached $23 million.

Market Movements and Reactions

The significant price fluctuations on Saturday led to a downturn in many markets, including stocks and digital assets. Dogecoin dropped to as low as $0.11 on Bitfinex but gained value after market liquidity intervened, stabilizing above $0.19.

Some market commentators attributed the crash to leveraged liquidations and automatic arbitrage errors rather than fundamental disruptions. The resurgence of institutional demand at the $0.19 level was also notable.

Price Movement Summary

The data following Dogecoin's crash and recovery is striking:

• Flash crash time: At 21:00 UTC, a drop from $0.22 to $0.11 (50%) with a trading volume of 4.6 billion.
• Recovery: Rapid return to the $0.19–$0.20 range.
• Continuous selling pressure saw a drop from $0.1935 to $0.1916 (-4%) at 11:18 UTC on October 11; trading volume was 32 million.
• Intraday price range: $0.14 (approximately 57% volatility), marking the highest volatility of the year for Dogecoin.
• Consolidation in the last hour around $0.193; no further signs of decline here.

Technical Analysis

The technical situation of Dogecoin is as follows:

• Support: Formed at the $0.19–$0.20 levels as institutional flows absorbed panic.
• Resistance: Just above the pre-crash high of $0.22; subsequent targets are $0.25 and $0.30.
• Trading Volume: Peak value of 4.6 billion; the 30-day average trading volume is 2.0 billion.
• Pattern: A potential double bottom formation around $0.19 indicating an accumulation zone.
• Momentum: Oversold conditions and expanding Bollinger bands suggest a potential short-term average reversal.

Trader Observations

Market observations are as follows:

• Whether the $0.19 level will hold as solid support or create a new liquidation wave.
• How ETF flows and institutional accumulations will cope with broader macro risks.
• Actions of large investors (whales) adding approximately 2 billion Dogecoin — is this a signal to buy or a liquidity trap for exits?
• Volatility patterns following the tariff shock — can Dogecoin return to the $0.25–$0.30 range, or will it remain below $0.20?
• Confirmation of a triangle reconfiguration upwards from $0.22 — does this invalidate the bearish structure?