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Dogecoin Plunges 50% in Flash Crash, Recovers as Whales Buy

Dogecoin Plunges 50% Amid Crypto Market Selloff, Surges Back as Whales and Institutions Accumulate

  • Dogecoin’s price dropped by 50% in a flash crash, slipping from $0.22 to $0.11 before recovering to nearly $0.20.
  • Trading volume soared to 4.6 billion tokens, roughly three times the daily average.
  • The price collapse followed the announcement of a 100% tariff on Chinese imports by the Trump administration, which triggered a wider selloff in crypto and equities.
  • Large holders (“whales”) and institutions accumulated over 2 billion DOGE as prices stabilized, and exchange outflows surpassed $23 million.
  • 21Shares introduced its [institutional DOGE ETF (TDOG)](https://www.21shares.com/) during the heightened volatility, offering regulated exposure to Dogecoin.

Dogecoin underwent a sharp price drop late Friday, when its value plunged from $0.22 to $0.11 within minutes before rebounding to the $0.19–$0.20 range. The event occurred at 21:00 UTC on October 10 and was linked to broader market declines following the U.S. government’s announcement of steep tariffs on Chinese imports.

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Trading during the session reached 4.6 billion DOGE, well above the daily average of 1.5 billion. The daily price range was $0.14, marking a 57% swing in value and representing the highest volatility for Dogecoin this year. Large-scale investors moved quickly, with exchange outflows topping $23 million and over 2 billion DOGE transferred into corporate wallets.

Shortly after the price sank to $0.11 on Bitfinex, liquidity providers intervened, allowing Dogecoin to stabilize near $0.19. Market reports indicated that the rapid selloff was caused by “leveraged liquidations and automated arbitrage failures, rather than a shift in Dogecoin’s underlying fundamentals.” As the market calmed, institutional buyers and ETF inflows supported the price recovery.

Technical data showed strong support forming at the $0.19–$0.20 level, while resistance remains at $0.22, the pre-crash high. Trading volume surged to more than double the 30-day average, signaling heavy turnover. Analysts observed a double-bottom pattern near $0.19, which is often seen as an accumulation signal. Indicators suggested that DOGE became oversold during the event, which could lead to short-term price stabilization.

The launch of the 21Shares DOGE ETF (TDOG) came as institutional buyers returned to the market. With large holders acquiring a significant share of DOGE and ETF interest growing, traders are watching whether the $0.19 support level holds or if further volatility will ensue. Technical signals point to a possible mean reversion, but continued selling or another break below $0.19 could indicate more downside ahead.

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