Dogecoin and Meme Coins in Focus: The Liquidation Wave Hits Volatile Tokens

Meme Coins – digital assets that originated from internet memes and are known for their extreme volatility – are currently under significant pressure. Dogecoin (DOGE), the most well-known representative of this asset class, dropped sharply mid-week as liquidation activities and declining risk appetite targeted these highly volatile tokens. With a 24-hour decline of about 4.37%, DOGE is currently trading at $0.12 – a crash that underscores the vulnerability of this speculative asset class.

What are Meme Coins and why are they suffering from market pressure?

Meme Coins typically emerge as humorous or viral projects but often gain substantial market capitalization through retail speculation. Unlike established cryptocurrencies, they lack fundamental utility or technological innovations – their price movements are primarily driven by sentiment and investors’ risk appetite. This makes them the first targets during market corrections: when institutional investors reduce their risk exposure, they shift away from Meme Coins, leading to liquidation cascades.

The current weakness is not an isolated DOGE phenomenon. Several other highly volatile tokens experienced significant sell-offs as traders reduced their positions. The increased trading volume – for example, DOGE’s volume was about 124% above the 24-hour average – signals not a lack of interest but broad position adjustments. Meme Coins thus demonstrate their characteristic trait: during market turbulence, they become the first victims of waning risk appetite.

DOGE price crash on January 23: Technical analysis and support levels

On January 23, a decisive sell-off occurred. Dogecoin fell from $0.1271 to $0.1250, breaking the critical support level of $0.1254 with significant volume. The daily low was $0.1233 – a development that confirmed a broader bearish structure with lower highs and lower lows.

During the US trading session, a core breakdown took place: with a volume of 556 million tokens – about 124% above the average – the market pushed DOGE against all supports. Resistance then established itself firmly in the range of $0.1260 to $0.1270, where sellers repeatedly struck in subsequent sessions. A brief rebound pushed the price from $0.1245 to $0.1253 but failed to gain momentum and collapsed back into consolidation at $0.1250.

Momentum indicators show a mixed picture: on longer timeframes, they remain weak, while shorter charts increasingly suggest oversold signals. This constellation typically leads to disorderly sideways movement rather than a clear trend reversal – a classic pattern for Meme Coins during liquidation pressure phases.

Trader’s outlook: Resistance zone and next targets

The scenario remains a “sell on rallies”: as long as DOGE remains below the zone of $0.126–$0.127, upward movements should be viewed as selling opportunities. The stabilizing zone at $0.124–$0.123 could allow for sideways consolidation and initial bottom formation – a scenario many Meme Coin traders are watching.

A clear break below $0.123 would activate $0.12 and $0.115 as next critical support levels. Conversely, DOGE would need to sustainably return above $0.126 and hold there to fundamentally change the trend structure – something that has not been achieved since the sell-off.

The trading structure remains typical for Meme Coins: volatile reactions to macro sentiment, hypersensitive responses to liquidation waves, and weak bottom formation processes. DOGE embodies the core characteristics of this speculative asset class – high profit potential with corresponding risk appetite, but also catastrophic losses during market corrections and liquidations.