Dogecoin Faces Persistent Selling Pressure as Market Sentiment Turns Bearish

Quick Numbers

• DOGE dropped 3.95% in 24 hours, adding to a 7.59% weekly slump
• Current price: $0.13, testing critical support levels
• Long liquidations exceeding $242K triggered forced binning of positions across leveraged traders
• Extreme fear sentiment (index at 24) pushing altcoin selling pressure

Technical Weakness Persists Across Key Indicators

The recent price action reveals sustained bearish momentum through multiple technical lenses. Dogecoin’s Relative Strength Index (14) at 32.23 confirms the coin is trading near oversold conditions, yet without a defined bounce setup. Meanwhile, the MACD (12, 26) reading of -0.01328 and Momentum (10) at -0.039 reinforce downward pressure.

Short-term moving averages tell an equally concerning story:

• EMA (10): 0.17617
• SMA (10): 0.17867
• EMA (50): 0.20535
• SMA (200): 0.21608

DOGE remains below both intermediate and long-term trend lines, suggesting sellers maintain structural control.

When Liquidations Trigger a Selling Cascade

On November 6, Dogecoin witnessed an extreme liquidation imbalance of 12,129%, with $3.94M in long positions getting binned versus just $961.79K in shorts. This lopsided forced selling created significant downward momentum as over-leveraged traders had no choice but to exit.

The underlying issue: DOGE’s turnover ratio of 7.5% exposes its thin liquidity conditions. When forced binning occurs—even at modest scales—it disproportionately impacts price levels. Evidence of weakening speculative confidence appears in the 6.8% week-over-week drop in futures open interest, while funding rates sit at -0.002%, suggesting bearish leverage may finally be getting purged.

Market-Wide Risk Aversion Dampens Altcoin Appeal

Broader crypto market dynamics are working against altcoins like Dogecoin. The Crypto Fear & Greed Index remains at 24 (“Extreme Fear”), reflecting aggressive risk-off positioning. Investors are rotating capital into Bitcoin, now commanding 60% of total dominance, while reducing altcoin exposure.

Notably, DOGE’s 30-day correlation with Bitcoin has weakened to 0.65, meaning Dogecoin no longer moves in lockstep with BTC during downturns. This signals reduced safe-haven appeal and heightened selling pressure as macro uncertainty persists and institutional interest remains subdued.

Support Levels Under Scrutiny

The $0.15 level functions as the critical support zone that traders are closely monitoring. A daily close beneath this threshold could unlock algorithmic selling that pushes DOGE toward the $0.12–$0.114 range, aligning with 2025’s floor levels.

On the upside, reclaiming $0.17—near the short-term EMA cluster—would signal stabilizing market confidence and potential trend recovery. Until then, expect heightened volatility as the market digests this selling-driven consolidation phase.