Dogecoin (DOGE) continued its downward spiral on Tuesday, trading around $0.19 after a nearly 17% drop the previous day. This recent correction triggered over $20 million in liquidations within the past 24 hours — part of a broader trend that has seen more than $100 million in total DOGE liquidations over the past week. With key technical indicators flashing red and market sentiment turning bearish, analysts are now eyeing a potential drop to the $0.14 support level.
The sharp decline has sparked growing concern among traders and long-term holders alike, especially as momentum shifts against the once high-flying meme coin. Despite ongoing public support from figures like Elon Musk, Dogecoin’s price action suggests that market fundamentals and trader positioning are currently outweighing celebrity endorsements.
👉 Discover how market sentiment shifts can impact volatile assets like DOGE.
Dogecoin Price Drops Amid $20M in Liquidations
Dogecoin plunged nearly 17% on Monday, extending its losses into Tuesday with an additional 4% drop during Asian trading hours. According to data from CoinGlass, this sustained downward movement triggered a wave of forced liquidations across leveraged positions, totaling over $20 million in the last 24 hours alone.
Such large-scale liquidations often amplify selling pressure, creating a feedback loop where falling prices force more margin calls, which in turn push prices even lower. Over the past week, cumulative liquidations have exceeded $100 million, signaling significant stress in the DOGE derivatives market.
This kind of market behavior typically fuels fear, uncertainty, and doubt (FUD) among retail investors. Even strong narratives — such as continued advocacy from Elon Musk — may not be enough to counteract the technical and structural weaknesses emerging in Dogecoin’s price structure.
A critical indicator highlighting growing bearish sentiment is the DOGE long-to-short ratio, currently sitting at 0.86 and trending downward — the lowest level this month. A ratio below 1.0 means more traders are betting on price declines than gains, reflecting increased dominance by short sellers.
When combined with high liquidation volumes, this imbalance suggests that the path of least resistance for Dogecoin is now firmly to the downside.
Technical Outlook: Bearish Momentum Builds
From a technical perspective, Dogecoin faced strong resistance at its 50% Fibonacci retracement level — drawn from the August 14 low of $0.05 to the December 2 high of $0.48 — near $0.27 on February 15. After failing to break above this key psychological and technical zone, DOGE began a steady decline, losing nearly 26% over two weeks.
Although the coin saw a brief 20% rebound over the weekend, bullish momentum failed to hold, and selling pressure resumed on Monday. As of Tuesday’s writing, DOGE was down another 3.4%, hovering around $0.19.
On the daily chart, the Relative Strength Index (RSI) has dropped to 33 — below the neutral 50 threshold and approaching oversold territory at 30. While an RSI near 30 could suggest a potential bounce, the context matters: this reading comes after a strong rejection from higher levels and amid deteriorating market structure.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator shows a clear bearish crossover, with the signal line crossing below the MACD line. This pattern typically precedes further downside momentum and is often used by traders as a confirmation of a sustained downtrend.
👉 Learn how tools like RSI and MACD help predict crypto market reversals.
Key Support Levels in Focus
The immediate level to watch is $0.18**, which serves as a weekly support zone. If Dogecoin fails to stabilize above this point and closes below it on a daily basis, the next major target for bears becomes the **November 3 low of $0.14.
A break below $0.18 would likely trigger additional stop-loss orders and attract more short positions, potentially accelerating the move toward $0.14. This level is significant not only technically but also psychologically — it represents a roughly 50% decline from DOGE’s recent peak and could serve as a base for a longer-term bottoming process.
However, if DOGE manages to hold above $0.18 and shows signs of consolidation or reversal — such as bullish candlestick patterns or rising volume on up-moves — a recovery toward the 50% retracement level at $0.27 could re-enter the picture.
Until then, the bias remains bearish.
Core Keywords Identified
- Dogecoin price crash
- DOGE liquidation
- Dogecoin technical analysis
- DOGE long-to-short ratio
- Cryptocurrency market correction
- DOGE support level
- MACD bearish crossover
- RSI crypto indicator
These keywords have been naturally integrated throughout the article to enhance search visibility while maintaining readability and relevance.
Frequently Asked Questions (FAQ)
Q: What caused Dogecoin’s recent price drop?
A: The recent decline was triggered by a combination of failed breakout attempts at key resistance levels, increased short-side positioning, and over $20 million in leveraged position liquidations within 24 hours.
Q: How much has DOGE been liquidated in total recently?
A: Over $100 million in Dogecoin positions have been liquidated in the past week, with more than $20 million occurring in just the last 24 hours.
Q: What is Dogecoin’s current long-to-short ratio?
A: As of the latest data, DOGE’s long-to-short ratio is 0.86, indicating more traders are betting on price declines than increases.
Q: Is Dogecoin oversold right now?
A: The RSI is approaching oversold territory at 33, close to the 30 threshold. While this may suggest a short-term bounce, sustained bearish momentum means a deeper correction could still occur.
Q: What is the next major support level for DOGE?
A: If $0.18 fails as support, the next major target is $0.14 — a level tied to previous price action and psychological significance.
Q: Can Dogecoin recover from this downturn?
A: Recovery is possible if buying pressure returns and DOGE holds above $0.18. A close above $0.27 could signal renewed bullish momentum, but for now, the trend remains downward.
👉 Stay ahead of market moves with real-time analytics and trading tools.
Final Thoughts
Dogecoin’s latest crash reflects broader trends in cryptocurrency markets, where sentiment, leverage, and technical structure often outweigh narrative-driven optimism. While community support and celebrity endorsements keep DOGE in the spotlight, price action tells a different story — one dominated by bearish momentum and increasing short-side control.
Traders should closely monitor the $0.18 support level. A sustained break below could open the door to $0.14, while a successful defense might pave the way for a corrective rebound.
In volatile markets like crypto, staying informed and using data-driven insights can make all the difference between reacting emotionally and acting strategically.