Dogecoin dips below the support level of $0.126, will it continue to $0.122?

Dogecoin experiences a shallow decline of about 5% and is now trading at the $0.12 level after failing to hold the support zone around $0.126. This movement marks a shift from consolidation to more evident selling pressure, driven by a wave of long position liquidations in the derivatives market. Nevertheless, analysts are still questioning whether this is merely a temporary correction or an early signal of a deeper bearish trend.

Mechanism of Decline and Liquidation Waves

As Dogecoin breaks below the key support at $0.126–$0.127, trading volume spikes significantly, creating a domino effect that triggers forced liquidations. This decline is not the result of a single news catalyst but rather an accumulation of positional pressure and DOGE’s failure to maintain its previous consolidation level. Every rebound attempt faces strong selling pressure in the just-left zone, indicating a shift in sentiment from bullish to bearish in the short term.

Traders note that rebounds encounter fairly tough resistance at the $0.126–$0.127 level, an area that previously served as support. This phenomenon is characteristic of a market structure where polarity shifts, with old support zones becoming new resistance. The increased volume during the breakdown confirms that this is not a shallow dip easily recovered from, but a movement validated by serious trading activity.

Technical Analysis: From $0.1258 to the Critical Level $0.124

Dogecoin is under pressure from the $0.1258–$0.1260 base with aggressive selling momentum. From there, the price continues downward toward $0.123, with sellers actively maintaining bounce attempts at each level. The short-term structure has shifted bearish, with rising volume reinforcing the credibility of this downside move.

The $0.124 level now becomes a crucial short-term boundary for DOGE. If support at this point holds, there is a possibility of stabilization and a more measured rebound toward the zone of $0.126–$0.127. However, a break below $0.124 will open the risk of further decline toward the $0.123–$0.122 area, where bearish momentum could continue to extend. The current price stabilizes around $0.125 but remains below the newly formed resistance level, indicating that selling pressure still dominates.

Broader Market Context and DOGE’s Relative Position

Dogecoin’s decline is not isolated—it is part of broader pressure in the cryptocurrency market, where memecoins collectively lead the losses. DOGE shows some relative strength compared to other digital assets, correcting alongside the overall weakening market momentum. This situation reflects a shift in sentiment from optimism to caution among retail and institutional traders.

The 24-hour trading volume reaches $20.22M with a 4.51% decrease, indicating that liquidation is not limited to speculative positions but also involves profit-taking from long-term holders. This combination creates ongoing selling pressure without significant buying catalysts to offset it.

Outlook Scenario: What’s Next for DOGE?

Traders are closely watching the $0.124 level as the most critical hold-or-break zone. If this support remains intact and a rebound pushes back above $0.126–$0.127, the narrative of a shallow decline will strengthen, with potential for short-term consolidation. A full recovery requires a breakout above the $0.126–$0.127 zone to ease downside pressure.

Conversely, failure at the $0.124 level will be a fairly serious bearish signal. In this scenario, DOGE risks continuing its decline toward $0.123–$0.122, with bearish momentum intensifying as liquidation cascades in the derivatives market expand. Short traders will become more aggressive, and the next support levels are still quite distant, creating an unfavorable environment for holders.

In conclusion, although the current decline appears shallow in percentage terms, the technical structure indicates serious movement confirmed by volume. The outcome at the $0.124 level will determine whether DOGE can return to consolidation or continue a deeper bearish phase into early 2026.