Dogecoin sharply corrected during the morning trading hours, major investors started to sell off their positions

Dogecoin is under significant selling pressure this morning, with DOGE sharply correcting to the $0.12 level after previously holding the $0.127 area. Real-time data shows that in the last 24 hours, DOGE’s price has fallen 3.17%, dropping from a high of $0.13 toward deeper support. This movement marks DOGE’s repeated failure to break through key resistance levels, triggering a wave of automatic liquidations that further exacerbate the decline.

Accumulated selling from institutional investors is no longer hidden behind regular trading activity. The volume spike during the decline phase reveals that this is not just normal asset rotation, but coordinated position disposals. This phenomenon aligns with recurring trends in the altcoin sector, where risk-sensitive market sentiment drives tiered liquidations and creates forced selling cycles.

Support and Resistance: DOGE Technical Roadmap

DOGE’s current price structure tells a clear story for those who read charts carefully. The $0.13 level acts as the first support after the drop from $0.137, but with the current conditions, it has been broken down to $0.12. The $0.127 level previously served as a rejection floor against further selling, but its strength proved limited in the face of ongoing market volume.

The main resistance DOGE needs to overcome is in the $0.137-$0.138 area, a region that has repeatedly triggered failures in recent weeks. If the price cannot break through this level with convincing volume, the short-term recovery prospects will diminish further. Traders holding long positions should understand that each failure at this resistance could trigger the next wave of liquidations.

Why Forced Selling Is Driving DOGE Price Down to $0.125?

The immediate trigger for DOGE’s decline is not sudden news, but large-scale asset transfers to exchanges. When the price initially refused to return to higher levels, market confidence quickly eroded. This phenomenon started when DOGE faced rejection around $0.15 earlier this month, a level that should have been a bounce point but instead became a negative turning point.

The increasing selling pressure afterward is not coincidental. It results from interconnected chain liquidation mechanisms: long positions seeking exit points, stop-loss triggers, and margin calls forcing forced closures. The price continued to decline until reaching around $0.125 before buyers attempted to re-enter at the $0.127 area, creating a temporary stabilization that is highly questionable in its sustainability.

Critical Levels for Traders: What’s Next for DOGE?

The first and most optimistic scenario is if DOGE manages to consolidate around the $0.127 support and then rebound back toward $0.13. If this occurs, patient traders can anticipate a slow recovery toward the previous resistance levels. However, the real test remains at $0.137, where the last buying momentum lost strength.

The second, more dangerous scenario, is if the $0.127 support fails and the price continues to correct deeper toward $0.125 or even lower. In this case, the “liquidation floor” below that level could open the door to explosive declines that are difficult to predict. Traders should consider securing their positions and not relying on weak support levels.

Signals from the Broader Market: XRP and Other Altcoins

While DOGE struggles with selling pressure, the overall cryptocurrency market shows mixed signals. XRP provides an interesting contrast, with data indicating that in the last one-hour trading session, the price increased by 0.43%, showing some buying activity remains in the more fundamental sector. The inflow into the US-listed XRP ETF spot totaling $91.72 million this month suggests that institutional investors are still interested in certain assets despite altcoins like DOGE experiencing pressure.

This comparison reveals a clear rotation in risk preferences. Large investors are gradually shifting capital from meme coins with weak fundamentals toward projects with clearer use cases. Although DOGE has strong brand recognition, it is not enough to counteract the selling wave triggered by changing global risk sentiment and coordinated leverage reductions among traders.

Until DOGE shows strong signs of breaking through resistance and attracting new capital flows, this technical decline should be viewed as stabilization after liquidation, not as a confirmed market bottom.