Dogecoin Drops Below $0.08 as $7.6M Liquidations Hit Traders — Is DOGE Ready for a Rebound?

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• Dogecoin dropped below $0.08 as leveraged traders faced major liquidations.
  
• Futures markets show strong selling pressure, but spot buyers remain active.
  
• DOGE recovery depends on reclaiming $0.08 and breaking above $0.085.

Dogecoin (DOGE) is facing renewed selling pressure after losing a key support level, triggering a wave of liquidations across leveraged trading markets. The popular memecoin dropped below the important $0.08 mark, reaching around $0.079 for the first time in nearly three weeks as traders reacted to weakening momentum.

The latest decline has pushed DOGE below its short-term moving averages, reinforcing a bearish market structure. While derivatives data points to heavy selling and increased caution among traders, activity in the spot market suggests some investors are still viewing the downturn as a possible buying opportunity.

Dogecoin Liquidations Trigger Market Anxiety

The break below $0.08 created significant losses for bullish traders who had expected the support zone to hold. Data from CoinGlass showed that approximately $7.68 million in long positions were liquidated as leveraged positions were forced to close.

The liquidation wave added pressure to DOGE’s decline, encouraging some traders to exit positions in fear of further losses. In perpetual futures markets, selling activity increased sharply, with sell volume climbing to about $1.3 billion while buying volume fell near $1.1 billion.

The negative net buying trend indicates that sellers have maintained control, with many traders reducing exposure rather than adding new positions.

Futures Market Shows Strong Bearish Pressure

Dogecoin’s weakness has been especially visible in the derivatives market. Futures data showed around $460 million leaving the market compared with roughly $413 million in inflows over the past 24 hours.

This resulted in a negative futures netflow of about $46 million, highlighting aggressive selling from futures traders. The move suggests that short-term market participants remain cautious and are positioning for continued downside.

Technical indicators also reflect the current pressure. DOGE’s Relative Strength Index (RSI) dropped to around 28, placing the cryptocurrency in oversold territory. While oversold conditions can sometimes signal possible rebounds, they also show that sellers currently have strong influence over price movement.

Can DOGE Recover After the Drop?

Despite the bearish derivatives activity, Dogecoin’s spot market is showing a different trend. Spot netflow data declined to approximately -$7.7 million, suggesting that more coins are leaving exchanges rather than entering them.

Lower exchange inflows can indicate that some holders are choosing not to sell, while buyers may be accumulating during the price decline. Historically, this type of behavior can create conditions for a potential recovery if selling pressure begins to weaken.

For DOGE to regain momentum, the cryptocurrency needs to reclaim the $0.08 level and establish a stronger move above $0.085. Until then, traders will likely watch whether the current bearish trend continues or whether dip-buying activity helps stabilize the market.

Also Read: Dogecoin Crashes Below $0.09 as $6.4M in Liquidations Shake the Market

Dogecoin’s recent fall reflects growing pressure from leveraged traders and a weak derivatives environment. While short-term risks remain, steady spot demand could provide support if selling exhaustion continues. The next key levels around $0.08 and $0.085 may determine whether DOGE enters a recovery phase or faces another decline toward lower support zones.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.