Dogecoin (DOGE) experienced a significant sell-off on Thursday, plummeting more than 10% in 24 hours, as data showed a spike in leveraged trader liquidations across the crypto market. The downward move breached several short-term technical support levels that analysts had been watching closely, suggesting a potential shift in momentum for the popular but volatile digital asset.
The decline coincided with a broader downturn in the cryptocurrency market, with Bitcoin and Ethereum also seeing losses. Data from derivatives tracking platforms indicated that total liquidations—where leveraged positions are automatically closed due to insufficient collateral—across the crypto market exceeded $300 million in the same 24-hour period. A notable portion of these were long positions in Dogecoin and other major altcoins.”When we see this volume of liquidations, it often creates a cascading effect,” said one market analyst who requested anonymity due to firm policy. “Forced selling triggers more stops, which pushes prices down further and tests the resolve of remaining support levels.”
Dogecoin, which began as a joke cryptocurrency in 2013, has evolved into a major asset with a market capitalization often ranking in the top ten. Its price is famously influenced by social media sentiment and endorsements from high-profile figures like Elon Musk. However, its lack of a defined development roadmap or intrinsic utility makes it particularly sensitive to shifts in broader market risk appetite.
Technical analysts noted that DOGE had failed to hold above the psychologically important $0.15 level earlier in the week. The subsequent drop saw it break below its 50-day moving average, a key metric watched by traders. “The breach of the 50-day MA is a bearish signal for short-term traders,” a technical strategist at a digital asset firm was quoted as saying. “The next major support zone sits around $0.12, but if that fails, we could see a retest of the November lows.”
Looking ahead, market participants are watching for stabilization. Some analysts suggest the liquidations may have flushed out excessive leverage, setting the stage for a potential bounce. However, others caution that without a positive catalyst or a recovery in the broader crypto sentiment, Dogecoin could remain under pressure. The focus will now shift to whether institutional flows or renewed retail interest can provide a floor for the meme coin’s price.