Dogecoin slipped 2.81% over the past 24 hours—a modest underperformance compared to the broader cryptocurrency market’s sharper 4.14% decline. While the drop may seem incremental on the surface, it unfolds against a backdrop of intensifying bearish pressure driven by macro market dynamics, cascading liquidations, and deteriorating technical structure.
The catalyst for the latest downturn was a pronounced selloff in Bitcoin, which dipped below the critical $90,000 threshold. Historically, such moves trigger amplified losses across higher-beta altcoins, and Dogecoin—despite its meme origins—has long behaved as a liquidity-sensitive asset within this ecosystem. As Bitcoin dominance edged slightly lower to 59.07%, sentiment soured across the board, with Ethereum and Solana shedding 7% to 11% respectively. The Crypto Fear & Greed Index tumbled to 32, signaling a return to “Fear” territory and reinforcing risk-off behavior among traders.
Compounding the pressure, a wave of leveraged liquidations swept through the market. In just one hour, approximately $190 million in positions—predominantly longs betting on upward price movement—were forcibly closed. This cascade of forced selling created a self-reinforcing feedback loop: falling prices triggered more liquidations, which in turn accelerated the decline. Dogecoin, with its high concentration of retail traders often employing leverage, proved especially vulnerable to this dynamic.
From a technical standpoint, the damage was equally telling. Dogecoin breached a key support band between $0.127 and $0.128, a level that had previously acted as a floor during recent consolidations. With the price now hovering near $0.125, attention turns to the next layer of support around $0.123. Although the 7-day RSI has dipped to an oversold reading of 23.72, historical precedent suggests that oversold conditions alone rarely halt momentum-driven declines in volatile markets. A sustained recovery would likely require a daily close back above $0.127 to signal waning selling pressure.
In sum, Dogecoin’s recent slide reflects a convergence of three interrelated forces: a broad-based crypto market retreat, a deleveraging event sparked by Bitcoin’s weakness, and a technical breakdown that has shifted short-term momentum firmly into bearish territory. For investors, the path forward hinges largely on Bitcoin’s ability to stabilize—and ideally reclaim—the $90,000 mark within the next 24 to 48 hours. Should that fail to materialize, Dogecoin could face further downside, potentially revisiting the deeper accumulation zone between $0.115 and $0.090.
Source:: Why Dogecoin Is Struggling: Bitcoin’s Slide, Leverage Unwinds, and Broken Support