Dogecoin Plummets 20% Amid Market Fears, Liquidations

Dogecoin, the popular memecoin, has experienced a significant decline in value due to rising global market fears and widespread pressure across the cryptocurrency market. This sharp drop has led to extensive liquidations, with many traders finding themselves on the losing side of the move. Concurrently, engagement on Dogecoin’s social channels has decreased, and key on-chain metrics indicate a decline in Dogecoin activity. As the memecoin tests critical support levels, the trend suggests further pain ahead unless a stronger recovery develops soon.

The Dogecoin network activity is showing signs of weakness. A brief spike in daily active addresses earlier in the year has since faded, with usage levels now near year-to-date lows. Social engagement is also trending downwards, and both dominance and volume metrics suggest that users are losing interest. Without renewed interest, the market lacks the necessary energy for a sustained rebound.

The funding rate has slipped below neutral, favoring short sellers. While this can sometimes lead to short-term relief rallies, the overall sentiment remains negative. Price structure confirms a bearish bias, with momentum indicators stuck in lower ranges and volume steadily declining over the past several months. Dogecoin is now testing a key support area from the previous market cycle. A modest bounce may follow, but unless it reclaims higher resistance zones with strength, the broader trend remains tilted to the downside. If this current support fails, another leg lower could open up, sending the memecoin back to levels not seen since last fall.

The 15-minute Dogecoin (DOGE/USDT) chart shows a potential shift in short-term momentum. After a steep decline, DOGE established key support around $0.1300 and has since rebounded, consolidating between the $0.1450–$0.1550 resistance zone. The RSI, which previously dipped into oversold territory several times, has recovered to 48.96, signaling neutral momentum without immediate bullish or bearish bias. Meanwhile, the MACD shows signs of waning bullish momentum, with the histogram flattening and lines nearing a crossover. Price action is currently testing mid-level resistance around $0.1500, and failure to break higher could lead to a pullback toward the $0.1450 support area. If that level breaks, DOGE may revisit deeper support near $0.1300.

The chart suggests that traders are cautious, awaiting a clear breakout above $0.1550 or breakdown below $0.1450. Watch for RSI moving above 60 and a bullish MACD crossover as signs of a potential continuation rally. Until then, the price remains range-bound with reduced volatility. Any bearish crypto news may worsen the situation of the Doge price.

Dogecoin remains under heavy pressure as broader market sentiment turns risk-off. Social media engagement is drying up, on-chain activity is weakening, and technical signals continue to favor the bears. While short-term relief rallies are possible, especially with funding rates in negative territory, the overall trend is still downward. Unless the DOGE price can reclaim key resistance levels and reignite user interest, the path of least resistance is lower. The coming days will be critical. A decisive move from current levels will likely define the next phase for Dogecoin.