Dogecoin Holds Demand After Liquidity Sweep as Macro Fears Shake Crypto

Dogecoin traded near a key demand zone as broader crypto markets sold off amid macro pressure and rising liquidation activity. The memecoin held a tight range despite sharp volatility elsewhere. The daily DOGE/USDT chart on Binance shows price compressing near 0.127 after a full market cycle that began in July and unfolded through January 2026.

The wider market downturn added pressure. Bitcoin slipped below the $95,000 support level during the selloff. Total crypto market capitalisation fell by more than 2.5%. This decline followed renewed concerns about a potential trade war between the United States and several NATO members.

Dogecoin declined roughly 1.6% in the session. Even so, prices remained above its lowest support. This positioning keeps technical focus on whether demand will continue to hold during macro-driven volatility.

Technical Structure Shows Full Market Cycle

The daily chart shows Dogecoin starting July with a strong impulsive move higher. Price formed a rounded base before completing a clear cup structure. Buyers pushed DOGE steadily from the lower demand area into a bullish continuation phase.

During August and September, the chart marks a ‘bullish beauty’ structure. Prices posted higher lows with controlled pullbacks. DOGE expanded into a green premium zone before momentum peaked near the late-September high.

October marked a shift. Price broke market structure to the downside and entered a sustained decline. In November, DOGE swept liquidity below prior support. That move absorbed sell-side pressure and coincided with fading downside momentum.

Consolidation Forms at Key Demand Zone

By December, Dogecoin had transitioned into a clear consolidation phase. Daily candles overlapped tightly above the dotted demand line near the 0.12 area. This compression signals a balance between buyers and sellers.

The structure shows sellers failing to push the price lower. DOGE continues to hold above its lowest support. Volatility has narrowed while price remains range-bound.

Several resistance zones sit overhead. The chart marks levels near 0.146 and 0.150. Higher liquidity pockets appear around 0.188 and 0.215. A projected path on the chart suggests potential upside expansion once consolidation resolves.

Read More: Dogecoin Retests Descending Channel as Price Tests Key Support

Macro Catalysts Add Short-Term Pressure and Potential Relief

Dogecoin’s recent dip aligned with broader market stress. Bitcoin’s drop below $95,000 weighed on sentiment. At the same time, bullish liquidations in DOGE jumped to their highest level since November.

Liquidations occur when exchanges close leveraged positions after losses exceed collateral. This surge reflected forced position unwinds during the selloff. The move added short-term downside pressure to DOGE price action.

Attention now turns to upcoming catalysts. The US Supreme Court will rule on a major case tied to Donald Trump’s tariffs. Polymarket data shows most users expect a ruling against the tariffs, with potential refunds to affected companies. Would such a decision spark a short-lived rebound in risk assets?

Further policy developments also remain in focus. The Senate Banking Committee may advance the stalled CLARITY Act this week. Progress on the bill could support cryptocurrencies after last week’s pullback linked to legislative delays.

According to analyst Bitguru, Dogecoin has already swept liquidity and now compresses tightly at demand. Historical patterns show this structure often precedes sharp rebounds once buyers step in.

Conclusion:

Dogecoin price remains compressed at a key demand zone after a liquidity sweep and broader market sell-off. The technical structure shows consolidation holding above support while macro events and policy decisions drive volatility. Traders now watch whether buyers step in as catalysts unfold.