Dogecoin Plunges Below Key Support in Cents Range, Liquidations Mount

Dogecoin staged a sharp retreat, sliding through critical support near the 12-13 cents level as selling pressure intensified across crypto markets. The current price stands at 12 cents, marking a decline that has unleashed a cascade of liquidations in leveraged positions. What began as a consolidation breakdown has morphed into a forced deleveraging event, with traders caught offside and derivative positions forcibly closed.

The pullback reflects broader memecoin weakness, but DOGE’s specific breakdown below the $0.126-$0.127 support zone signals a shift in near-term momentum. With elevated trading activity accompanying the move, former support levels have flipped to become overhead resistance, reshaping the technical landscape for potential rebounds.

The Breakdown Confirmed by Volume

The piercing of the $0.1258–$0.1260 base didn’t happen quietly. Heavy trading volume confirmed the bearish repositioning, with the move extending toward the $0.123 handle as sellers remained aggressive on any bounce attempts. This expansion in turnover is the hallmark of forced activity—not casual profit-taking, but leveraged players being flushed out of their positions across futures and perpetual swaps.

The technical structure now flashed a clear warning. Volume dried up into attempts to stabilize near 12 cents, while overhead supply lurked just above at the former support zone of 12.6-12.7 cents. The combination suggests any rebound faces headwinds before recovery can take root.

Where Traders Draw the Line

Market participants have drawn a critical line in the sand at 12.4 cents. Should price hold above this threshold, stabilization becomes plausible—though rebounds would still face heavy supply near the breakdown zone where the original support failed. Reclaiming that zone remains the bulls’ prerequisite for easing downside pressure.

The downside scenario carries sharper teeth. A break below 12.4 cents opens the door toward 12.3-12.2 cents, with bearish momentum likely to extend as stop-losses trigger and sentiment deteriorates. In liquidation cascades, lower lows breed lower lows, at least until a capitulation flush provides a local bottom.

The Liquidation Cascade Effect

What makes this breakdown particularly acute is the positioning setup that preceded it. Dogecoin had consolidated within a tight range, attracting leveraged longs betting on a breakout. When the consolidation floor cracked instead of a ceiling breaking, those accumulated positions became disasters. The wave of forced exits spilled across derivatives markets simultaneously, with one liquidation feeding into the next.

This liquidation-driven selling is self-reinforcing in the near term. Each breakdown triggers stops, which cascade into margin calls, which force more selling. The process continues until either price stabilizes above a key support (buying the dip) or reaches levels where capitulation offers a flush low and reversal.

What Recovery Looks Like

For DOGE to arrest the decline, holding the 12.4-cent floor proves essential. Even then, the path back to profitability for late longs remains steep—they’d need price to reclaim 12.6-12.7 cents just to get back to where selling accelerated. That zone now acts as resistance, not support, meaning any bounce runs into supply at exactly the level where this move began.

Broader market conditions matter too. Dogecoin has tracked general crypto weakness, mirroring memecoin losses without standing out relative to the pack. Recovery hinges on whether the wider market stabilizes first, providing a foundation for DOGE to attempt a rebound. Until then, the coin remains vulnerable to further capitulation, particularly if Bitcoin or other major assets extend their declines and force additional margin calls across the board.

The 12-cent level marks not a floor but a waypoint in what may be a lengthening drawdown, with structural damage to near-term sentiment requiring time and stabilizing catalysts to repair.