Dogecoin (DOGE) has taken a sharp hit, plummeting nearly 30% last week and dropping to its lowest level in four months. With over $78 million in liquidations shaking the market, investors are eyeing key support levels as the meme coin struggles to recover.
Massive Liquidations Trigger Market Turmoil
As of Monday, Dogecoin is trading around $0.173, reflecting a steep decline from last week’s high. The price drop has led to over $22 million in liquidations within the last 24 hours, with total weekly liquidations surpassing $78 million, according to data from CoinGlass.
The wave of forced sell-offs has amplified Fear, Uncertainty, and Doubt (FUD) among investors, fueling additional selling pressure that could push DOGE to even lower levels.
Technical Analysis: Is More Downside Ahead for DOGE?
Key Indicators Show Bearish Momentum
- 100-Week Exponential Moving Average (EMA): Dogecoin closed below its 100-week EMA at $0.173, a level not seen since early November.
- Relative Strength Index (RSI): The RSI stands at 40, signaling growing bearish momentum as it slips below the neutral 50 level.
- Moving Average Convergence Divergence (MACD): A bearish crossover was recorded last week, further reinforcing the possibility of continued downside pressure.
Potential Support and Resistance Levels
- Support: If DOGE continues its downward trajectory, the next major support lies at $0.142, which marks the November 3 low.
- Resistance: A strong recovery above $0.181 could see Dogecoin retest $0.220, a key resistance level that traders are closely monitoring.
What’s Next for Dogecoin?
The ongoing price slump has left Dogecoin at a critical juncture. While some traders anticipate a potential bounce from oversold conditions, the broader crypto market sentiment remains fragile due to macroeconomic uncertainties and liquidation-driven volatility.
Investor Outlook: Key Takeaways
✅ Bearish Trend: Dogecoin remains under selling pressure after a significant price correction.
✅ Watch $0.142: A drop below this level could trigger a deeper sell-off.
✅ Break Above $0.181 Needed: Bulls must reclaim this level to signal a reversal.
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