Dogecoin and meme coins face heavy liquidation pressure: DOGE drops 7.81%

2026-01-29 20:02:38

The crypto market is experiencing renewed pressure on speculative commodities. Meme coins, as a category with high volatility and sensitivity to positioning changes, are suffering badly from the increased liquidation activity. Dogecoin was no exception, with the meme token dropping to $0.12, down 7.81% over 24 hours, as trading volumes continued to pick up.

Meme Tokens in Crisis: What’s Going on in the Market?

The background behind the sell-off is clear: liquidation pressure and declining risk appetite. As higher volumes hit the market and risk-related assets came under pressure, meme coins — by definition speculative and prone to sentiment shifts — were hit directly.

What do we mean by meme coins? These are cryptocurrencies based on memes or humorous concept, such as Dogecoin. Although they sometimes started out funny, some meme tokens have grown into serious trading markets. However, their high volatility and heavy reliance on sentimental factors make them particularly susceptible to sudden sell-offs and liquidations when the market turns.

DOGE technical structure confirms downward pressure

Dogecoin was still trading around $0.1271 on January 23, but it turned out not to be able to withstand the masses of liquidations. A high volume break pushed the price below the critical support level at $0.1254. During the U.S. trading session, the volume surged to 556 million tokens — 124% above the daily average — while DOGE dropped to $0.1233.

The prims structure shifts downwards: lower tops, lower bottoms. Resistance is now firmly anchored in the $0.1260–$0.1270 zone, where sellers repeatedly intervene. On shorter timescales, the price tried to recover through $0.1253, but the momentum was lacking. After some consolidation around $0.1250, it became clear: the rebound was mainly short-covering, not new buying interest.

Momentum indicators remain weak at higher timeframes, despite oversold signals on shorter charts — a combination that leads to swinging consolidation rather than an immediate trend turn.

Trading Scenarios for Meme Investors

This remains a sell-the-rally environment. As long as DOGE remains below $0.126–$0.127, rebounds will likely be captured.

The following critical levels:

Consolidation zone: $0.124–$0.123 provides room for lateral formation and bottoming
Downside targets: Break below $0.123 brings $0.12 and $0.115 back into focus
Bullish turn point: DOGE should recapture and confirm $0.126+ — something it hasn’t been able to do since the breakout

With a current price of $0.12 and a 24-hour minimum of $0.11, it’s clear that meme coins are still under fire. The volatility of this category — stronger reaction to liquidations than traditional crypto assets — makes caution essential for meme token traders.

The core risk: As long as the broader crypto market is under pressure and liquidation activity remains high, meme volatility will remain the norm.

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