Dogecoin Slides 3% as Market Turns Risk-Off Amid U.S.–China Trade Tensions

Dogecoin (DOGE) faced heavy selling pressure heading into the weekend, slipping nearly 3% as institutional traders reduced exposure across major cryptocurrencies. The meme-inspired token struggled to break above the $0.20 resistance level, where repeated failures triggered algorithmic selling and profit-taking. Broader macroeconomic stress and renewed trade tensions between the U.S. and China fueled a defensive tone across altcoin markets, prompting funds to unwind risk positions.

The latest retracement in DOGE came amid a volatile week for global assets, as investors reacted to headlines on potential new tariffs. Institutional sentiment turned risk-off, with macro funds scaling back crypto exposure in tandem with deleveraging in altcoin futures. Additional pressure came from regulatory uncertainty, with the U.S. Treasury’s pending rules causing some corporate treasuries to trim digital asset allocations.

Price action between October 20 and 21 saw DOGE trade within a narrow $0.204–$0.197 range, highlighting strong selling above $0.20. Notably, trading volume spiked at 15:00 UTC, when roughly 818 million DOGE changed hands — nearly three times the daily average. Despite attempts to rebound, prices slipped toward $0.197 late in the U.S. session, with limited support emerging on lower volume. Another 1% drop occurred in the final trading hour as algorithmic triggers accelerated liquidations below the $0.20 mark.

From a technical perspective, DOGE remains in a short-term bearish structure while trading under $0.20. Key resistance sits at $0.20–$0.201, while support zones are seen at $0.194–$0.196. Analysts caution that a sustained move above $0.201 could prompt short covering toward $0.208–$0.21, but failure to defend $0.194 risks a deeper correction to $0.187. Traders are watching macro signals closely — easing trade tensions could spark a rebound led by DOGE and fellow meme coin SHIB.