Dogecoin plunged past a key support level of $0.07, sinking to $0.068, a point not seen since November 2023. The memecoin’s price dropped 4.3% on the day, trading around $0.069 during the latest session. This slump unfolded amid a broader crypto market pullback, but Dogecoin’s momentum was notably sharper.
Trading volume surged 57% to $866 million, signaling heightened market activity as investors adjusted their positions. This spike in volume coincided with a wave of liquidations hitting leveraged Dogecoin traders. Data from CoinGlass showed that $8.2 million in long positions were liquidated within 24 hours, vastly outweighing the $552,490 in short position liquidations. The imbalance highlights how bearish pressure disproportionately affected bullish holders.
As prices slipped, many traders scrambled to cut exposure to rising liquidation risks. Coinalyze indicated that Dogecoin’s Sell Perpetuals Volume climbed to 493 million, while Buy Perpetuals Volume stood lower at 426 million. The net effect was a Buy-Sell Delta of negative 66.5 million, confirming heavier selling pressure in perpetual markets. Futures contracts reflected similar trends, with outflows reaching $520 million compared to inflows of $426 million, leading to a futures netflow drop of 361% to negative $94 million.
This flood of exits put considerable pressure on Dogecoin’s price, raising doubts about its ability to reclaim the $0.07 support. The technical picture was grim: Dogecoin’s Relative Strength Index dipped to 31.34, flirting with oversold conditions. Typically, such readings indicate strong bearish momentum, though they sometimes attract bargain hunters looking to buy the dip.
Despite the weakness in derivatives markets, Spot Netflow data suggested some resilience. Exchange outflows exceeded inflows by $1.87 million recently, implying fewer tokens available for immediate sale and offering a potential buffer against further declines. This dynamic keeps alive the possibility of Dogecoin climbing back above $0.07 and perhaps testing $0.075, assuming demand remains steady.
