Dogecoin and meme coins await clear signals amid intensified liquidation pressure

Meme coins are experiencing a period of uncertainty as traders waiting for a trend reversal face unprecedented liquidation pressure. Dogecoin (DOGE) retreated significantly over the past week, losing technical ground in a market where risk appetite has evaporated. The decline is not just a correction but reflects broader decisions by market participants to reduce exposure to speculative tokens.

Accelerated Drop: How Liquidation Forced DOGE Below Its Critical Support

At the end of January, DOGE experienced a decisive break that pushed the price from $0.1271 to $0.1250, a 1.7% decrease. Notably, the volume during this move was substantial: during the US session on January 23, traders exchanged approximately 556 million tokens, 124% above the daily average. This selling surge was not accidental but a direct result of increased liquidation activity affecting the entire high-beta asset category.

Breaking the support at $0.1254 confirmed a broader downtrend structure, with DOGE forming a sequence of lower highs and lower lows. The price hit intraday lows of $0.1233 before attempting a rebound. However, that bounce lacked real strength: after rising to $0.1253, resistance in the $0.1260–$0.1270 zone again halted any bullish attempts. Analysts interpret this behavior as short covering rather than genuine demand from new buyers.

Meme Coins Seeking Stabilization: Traders Expecting a Durable Rebound

The broader context explains why Dogecoin and other meme coins face this pressure. When risk expectations in financial markets deteriorate, traders adjust their portfolios starting with the most volatile assets. Pudgy Penguins, which emerged as one of the most robust NFT proposals in the current cycle, has also seen pressure on its PENGU token, indicating that even projects with long-term strategies (retail expansion, gaming, distributed tokenomics) are not immune to market sentiment shifts in crypto.

What’s interesting is that traders are not simply abandoning these positions: specific DOGE flows show high activity suggesting active repositioning, not passive disinterest. This means the market is still watching, still waiting. Long-term buyers, in particular, seem to be waiting for clearer signals indicating where a real support base might form.

Where to Look for the Next Levels? Key Resistance and Support for DOGE

In the short term, resistance remains firmly established in the $0.1260–$0.1270 zone, where sellers have repeatedly intervened during recent sessions. Any attempt to recover and hold above $0.126 would require a significant shift in market sentiment, something that has not occurred since the initial drop.

On the downside, maintaining the $0.124–$0.123 zone would allow for lateral consolidation and the building of a technical base. However, a clear break below $0.123 would reopen the path toward $0.12 and subsequently toward $0.115, levels that would determine the severity of the correction.

Momentum indicators remain weak on longer timeframes, although oversold readings are beginning to appear on intraday charts. This combination typically leads to volatile consolidation rather than an immediate trend reversal, which keeps traders cautious.

Current Data: The Gap Between Expectation and Reality

From January 23 to January 29, DOGE has fallen further, consolidating around $0.12, with a 3% loss in the last 24 hours. Trading volume reaches $19.52 million in that period, reflecting that although activity has decreased from liquidation highs, the market remains attentive to any decisive move.

Beyond DOGE: Why the Meme Cryptocurrency Market Remains Under Pressure

The meme coin situation does not exist in isolation. JPMorgan strategists recently highlighted that the current weakness of the US dollar is driven by short-term flows and sentiment shifts, not by lasting macroeconomic expectations. As a result, Bitcoin—typically seen as a hedge against dollar weakness—is behaving more like a liquidity-sensitive asset than a safe haven. This amplifies pressure on speculative assets like meme coins.

The contrast is revealing: while gold and emerging markets benefit from dollar diversification, high-risk cryptocurrencies lose ground. This dynamic is exactly what traders expecting a reversal are watching, aware that a change in global macroeconomic conditions would be necessary for a genuine shift in sentiment.

What You Should Keep in Mind When Trading DOGE or Meme Coins

As long as DOGE remains below $0.126–$0.127, rebounds are likely to be sold. The market remains a sell-on-rallies environment, with no clear evidence that buyers are willing to defend higher levels consistently.

Maintaining the $0.124–$0.123 zone opens the possibility of lateral consolidation, but a clear break below $0.123 would reactivate focus on $0.12 and $0.115 as downside targets. For a significant change in tone, DOGE would need to recover and hold $0.126+ consistently, something it has not achieved since the initial break.

For now, both DOGE and meme coins in general remain in wait-and-see mode: traders are watchful but cautious, buyers are waiting for confirmation, and sellers maintain technical control of the price. The next opportunity for these assets will depend on broader changes in global risk appetite.