Summary Dogecoin drops 7% to $0.173 after $22.27 million in daily outflows. Open interest declines despite a 50% surge in futures trading volume. Oversold signals suggest a potential short-term relief rally near $0.17. By Parshwa Turakhiya Dogecoin ( DOGE-USD ) fell nearly 7% on Sunday to around $0.173, extending a week-long decline as traders exited leveraged positions and liquidity flows turned sharply negative. The drop below the $0.18 support marks a key technical breakdown, reinforcing the broader risk-off tone across digital assets. The selloff gathered pace after Dogecoin failed to hold the 0.236 Fibonacci retracement level at $0.1787, drawn from October’s high of $0.2712 to its low of $0.1501. The breach confirms the continuation of the descending channel that has dominated DOGE’s structure since early October. DOGE price dynamics (Source: TradingView) The next support lies near $0.165-0.150, a zone that previously attracted dip buyers during the last correction. The 20-day EMA at $0.1953 and the 50-day EMA at $0.2109 have both crossed below the 100-day EMA at $0.2164, forming a “bearish stack” that underscores weakening momentum. The relative strength index has dropped to 34.69, hovering near oversold levels. While this suggests potential for short-term stabilization, Dogecoin remains technically fragile. A sustained recovery above $0.18-0.185 would be needed to shift sentiment back toward neutral, with further upside capped near $0.21, where the 0.382 Fibonacci level aligns with the 50-day EMA. Market flows show caution among traders According to Coinglass, daily spot netflows turned deeply negative at $22.27 million, marking one of the steepest single-day withdrawals in weeks. Futures trading volume rose more than 50% to $5.25 billion, but open interest fell nearly 4% to $1.67 billion. The combination of rising activity and shrinking leverage points to liquidation-driven volatility rather than fresh speculative positioning. Options activity surged over 2400% during the same period, reflecting increased hedging demand amid falling prices. Yet, total liquidations reached $13 million in the past 24 hours, mostly from long positions. Binance’s top trader long-to-short ratio remains above 2.3, showing that whales are maintaining a mild long bias, but the broader derivatives market has turned defensive. This shift mirrors the cooling sentiment across meme coins and speculative altcoins following Bitcoin’s stall near $69,000. Traders have rotated toward higher-cap assets such as Solana ( SOL-USD ) and Ethereum ( ETH-USD ), leaving meme tokens vulnerable to sharper downside swings. Outlook: Oversold but still under pressure Dogecoin’s near-term direction depends on whether buyers can reclaim $0.18 as support. A close above this level could spark a relief bounce toward $0.195 and $0.21, where the 50-day EMA and Fibonacci resistance converge. Failing that, bears may push the token toward $0.165 or even $0.150, marking a full retracement of its October move. Despite its persistent popularity, Dogecoin’s fundamentals remain driven primarily by liquidity cycles and retail sentiment rather than network growth. The recent divergence between rising trading volume and falling open interest underscores the speculative nature of its moves. Until broader market confidence improves, DOGE is likely to remain trapped in a volatile consolidation range. While the token is oversold on most technical indicators, a meaningful rebound will require renewed inflows and stabilization in the broader crypto market. For now, Dogecoin sits at a critical juncture - oversold, yet lacking conviction - as traders await clearer signals from Bitcoin and market-wide liquidity trends. This material may contain third-party opinions; none of the data and information on this webpage constitutes investment advice according to our Disclaimer . While we adhere to strict Editorial Integrity , this post may contain references to products from our partners. Original Post
