Dogecoin weakens amid wave of liquidation pressure as traders seek a price reversal

As intense liquidation pressure rekindles in the meme coin market, Dogecoin (DOGE) continues to be suppressed by recent selling pressure. In the trading market, a rapid decline in risk appetite has increased liquidation pressure on high-beta tokens, causing meme coins including DOGE to experience volatile price movements.

From last weekend to the recent days, DOGE has fallen from $0.1271 to $0.1250, and was subsequently pushed down to a low of $0.1233. Currently, it is trading near $0.12, with a 24-hour change rate of -4.53%. This decline is not merely due to decreased demand but is accompanied by active trading related to position adjustments, with trading volume surging over 124% of normal levels.

Market liquidation pressure is weighing on the meme coin market

In periods of overall crypto market bearish sentiment, liquidation pressure tends to impact high-beta tokens more easily. When traders reduce their exposure, the meme coin market tends to suffer the most. Looking at the sell flow specific to DOGE, it indicates not just a simple decline in interest but a clear intention of position rebalancing.

Market participants are becoming more cautious about recent volatility, with short-term traders rushing to take profits during upward moves, while long-term investors wait for more definitive signs of a bottom. This two-tiered selling pressure is believed to be the main factor suppressing DOGE’s downside.

Technical analysis indicates a bearish structure for Dogecoin

A detailed look at DOGE’s chart reveals a clear bearish structure characterized by a series of lower highs and lower lows. The recent resistance zone is anchored around $0.1260 to $0.1270, where persistent seller intervention has prevented price from rising further.

On short-term charts, a temporary rebound driven by short covering was observed, with a jump from $0.1245 to $0.1253. However, this movement lacked sustainability and ultimately converged into a consolidation around $0.1250. This can be interpreted as a mechanical rebound from short-term position adjustments rather than genuine new buying interest.

Momentum indicators show signs of being oversold on the short-term timeframe, but the longer-term trend remains weak. This divergence often leads to choppy, volatile sideways markets, making it difficult for traders to judge the next move.

Recent price targets and key support/resistance levels

The following price zones are critical for DOGE’s future movement:

Upper resistance zone: The $0.1260 to $0.1270 range is the first resistance. If this level cannot be broken and sustained, the environment of selling rallies is likely to continue.

Lower support zone: Maintaining support around $0.1240 to $0.1230 could help defend against a significant decline. Conversely, a clear break below $0.1230 could target lower levels at $0.1200 and $0.1150.

Sideways consolidation zone: If price remains within the $0.1240 to $0.1230 range, liquidation pressure may temporarily ease, allowing a base to form. However, this scenario depends on overall market risk sentiment improving.

Reversal scenarios and trader responses to watch

For DOGE to achieve a meaningful trend reversal, a recovery above and sustained at $0.1260 is essential. Since the recent breakdown, this level has not been reclaimed, requiring substantial buying pressure for a bullish turn.

Currently, the environment of “selling rallies” remains dominant. Until liquidation pressure fully subsides, this market structure is unlikely to reverse easily. However, improvements in short-term momentum and volume contraction could signal an impending reversal. Short-term traders may see small rebounds around $0.1250 to $0.1260 as short-term selling opportunities, while long-term investors might look for buy points below $0.1200.

According to the latest data, DOGE’s 24-hour high is $0.13, and the low is $0.12, with a trading volume of $20.47M. This significant fluctuation in the lower price range indicates that liquidation pressure remains strong. The next key phase will be when this pressure eases and volume normalizes.