Dogecoin Price Drops to Three-Week Low as Liquidations Rise

3h ago•

bullish:

bearish:

The Dogecoin price stayed under pressure after DOGE broke below the key $0.08 support level. The move pushed the meme coin to $0.079. It was the lowest level in almost three weeks.

Dogecoin traded near $0.07907. It was down 5.54% on the daily chart. The decline also pushed DOGE below its 9-day and 21-day moving averages. This confirmed a weak short-term trend.

The latest fall showed rising stress in the derivatives market. Long traders faced heavy liquidations. Futures traders also cut exposure. But spot market data showed a different picture. Some holders still appeared to buy the dip or move coins off exchanges.

Dogecoin Price Breaks Key Support As Liquidations Rise

The Dogecoin price dropped below $0.08 and touched $0.079. The fall triggered $7.68 million in long liquidations, according to CoinGlass data.

Perpetual sell volume rose to 1.3 billion. Buy volume fell to 1.1 billion. Net buying also stayed negative at around minus 1.1 billion.

Futures markets showed more pressure. Outflows reached $460 million over 24 hours. Inflows stood at $413 million. This pushed futures netflow to negative $46 million.

Dogecoin’s latest decline came during a sharp shift in trader sentiment. The $0.08 level had acted as a key short-term support zone. Many traders expected it to hold. When it failed, leveraged buyers were forced out.

This added more pressure to the Dogecoin price. It also raised concern that the meme coin could test lower levels if selling continues.

Still, the spot market did not show the same level of panic. Spot netflow dropped to negative $7.7 million. This means more DOGE left exchanges than entered them.

Liquidations Add To Market Fear

The break below $0.08 caused a wave of forced exits. CoinGlass data showed $7.68 million in long liquidations. These positions belonged to traders who expected DOGE to rise or hold support.

When prices fell, those positions were closed by exchanges. This often speeds up a market drop. It can also create fear among other traders.

The Dogecoin price then faced more pressure as sellers took control. Panic selling also increased as short-term traders moved to protect capital.

Sellers Dominate Perpetual Markets

Perpetual market data showed weak demand from buyers. Sell volume climbed to 1.3 billion. Buy volume dropped to 1.1 billion.

This gap showed that sellers had the stronger hand. Net buying also remained negative. That means traders were closing or reducing bullish positions.

This pattern kept pressure on DOGE. It also showed that derivatives traders were not ready to support the market after the breakdown.

Futures Netflow Signals Aggressive Selling

Futures activity also turned bearish. Over the past 24 hours, $460 million flowed out of DOGE futures. Inflows reached only $413 million.

As a result, futures netflow dropped to negative $46 million. The move marked a 459% decline. This showed aggressive selling in the futures market.

The Dogecoin price could stay weak if this trend continues. Futures markets often drive short-term volatility. They can also extend losses when liquidity is thin.

RSI Shows Bearish Momentum

Dogecoin’s Relative Strength Index fell to 28. This placed DOGE in oversold territory. It also showed that bears had control of the market.

An RSI below 30 can signal heavy selling. But it does not always mean prices will bounce right away. In some cases, oversold assets remain weak for longer.

If sellers keep control, DOGE may move toward $0.075. That level could become the next support zone for traders.

DOGE price analysis — Source: TradingView

Spot Market Gives Bulls Some Hope

Spot data gave a softer signal. DOGE spot netflow fell to negative $7.7 million. This means exchange outflows were stronger than inflows.

Lower exchange supply can reduce selling pressure. It may also show that some holders prefer to keep their coins off trading platforms.

This could help the Dogecoin price if buyers return. Even a small rise in demand can support a rebound when spot sellers are exhausted.

Recovery Levels Remain Clear

DOGE must first reclaim $0.08 to ease bearish pressure. That level has now turned into a key resistance area. A stronger recovery signal would come if DOGE closes above $0.085. That could show that buyers are gaining control again.

Until then, the Dogecoin price remains at risk. Traders may keep watching futures flows, liquidations, and spot exchange activity for the next signal.

Conclusion

Dogecoin’s fall below $0.08 marked a clear bearish shift. The move triggered heavy long liquidations and strong futures outflows. It also pushed DOGE to a three-week low near $0.079.

Yet the spot market showed some support. Exchange outflows suggested that holders were not rushing to sell. For now, the Dogecoin price must reclaim $0.08 to improve sentiment. A close above $0.085 would make the recovery case stronger.