Dogecoin traded near $0.109 after falling 1.04% in 24 hours, underperforming a slightly positive broader crypto market. The decline followed a flush of leveraged long positions after DOGE failed to clear a key resistance area.
The market is now watching whether buyers can defend the $0.105 support level. A hold above that area could support another move toward $0.116. However, a daily close below $0.105 may expose DOGE to the $0.10 level and a wider pullback.
Dogecoin’s latest decline came as derivatives traders faced a sharp leverage unwind. A large DOGE long position worth about $450,000 was liquidated on Binance Futures after the price rejected resistance.
Analysts also noted that most high-leverage long positions had already been cleared. One market watcher said DOGE’s long-side leverage “may have been mostly liquidated,” showing doubt over whether forced selling has fully ended.
The liquidation wave added forced selling pressure to the market. It also showed that the drop was not only linked to spot selling. Instead, overextended bullish bets in futures markets helped speed up the decline.
Traders are now watching funding rates and open interest for signs of stability. If open interest cools and funding rates normalize, liquidation pressure could ease. However, renewed leverage could keep DOGE exposed to sharp intraday moves.
DOGE failed to break the $0.117 to $0.12 resistance range, which remains a major level on the daily chart. This area also sits near the 200-day simple moving average, placed around $0.1227.
The rejection stalled Dogecoin’s recent recovery from the mid-April low. DOGE had gained about 29% before momentum faded near resistance. However, the rally lacked a strong new market catalyst.
Some traders also pointed to a possible head-and-shoulders setup. One analyst said the pattern “could break down” if DOGE loses nearby support. The statement shows market caution rather than a confirmed direction.
A daily close above $0.12 would weaken the bearish setup. It could also give buyers another chance to target higher resistance. Until then, DOGE remains capped below a technical ceiling.
The nearest support sits around $0.105, near the recent swing low and the 38.2% Fibonacci retracement area. If DOGE holds that level, price could attempt another rebound toward $0.116.
A break below $0.105 may shift attention back to the $0.10 psychological support. The 20-day exponential moving average also sits near $0.10277, making the zone important for short-term traders.
Some chart watchers are also tracking the $0.0885 to $0.0950 area. A deeper break could open the path toward the $0.10 to $0.07 accumulation zone. However, that move has not been confirmed.
DOGE remains below the $0.1339 Fibonacci resistance level. That level comes from the range between the $0.0885 low and the $0.3006 high. A daily close above $0.1339 would be the first stronger bullish test.
Dogecoin’s RSI is near 64 on the daily chart, showing short-term buyer strength. However, the reading is moving closer to overbought territory, which may limit the rebound near resistance.
The MACD has turned positive, with the MACD line above the signal line. The histogram is slightly green, showing that momentum has improved. Still, the move remains modest compared with past stronger rallies.
Spot market data shows a more constructive picture. DOGE recorded negative spot netflows for five straight days, with about $7.04 million leaving exchanges over the latest 24-hour period. That can point to accumulation when coins move away from trading platforms.
Derivatives activity also increased, with futures netflows rising to about $31.4 million. Additionally, short liquidations reached about $2.2 million in 24 hours as some traders covered bearish positions.
Dogecoin’s next move depends on two levels. Sellers are watching the $0.105 area for a breakdown, while buyers need a close above $0.12 and then $0.1339. Until either side confirms control, DOGE may remain between recovery and downside risk.
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