Dogecoin falls below $0.08 amid liquidations

• Dogecoin fell below the US$0.08 support level, reaching a three-week low of US$0.079 as selling pressure intensified.
• More than US$7.68 million in long positions were liquidated, while futures traders reduced exposure across derivatives markets.
• Analysts suggest a recovery may require Dogecoin to reclaim US$0.08 and close above US$0.085 in the near term.

Dogecoin (CRYPTO:DOGE) extended its decline and fell below the US$0.08 support level, dropping to US$0.079 and reaching its lowest price in nearly three weeks.

The move pushed the memecoin below its nine-day and 21-day moving averages, while derivatives market activity indicated increasing bearish sentiment among traders.

More than US$7.68 million in leveraged long positions were liquidated after the decline, according to CoinGlass data, reflecting expectations among traders that the US$0.08 level would hold.

Perpetual futures markets also showed heavier selling activity, with sell volume reaching 1.3 billion compared with 1.1 billion in buy volume, while net buying remained negative at approximately -1.1 billion.

Futures netflows fell 459% to negative US$46 million as outflows of roughly US$460 million exceeded inflows of about US$413 million, and Dogecoin was trading near US$0.079 at the time of reporting.

Technical indicators pointed to continued weakness, with the Relative Strength Index falling to 28, a level typically considered oversold and often associated with strong downward momentum.

However, spot market activity remained more resilient, with spot netflows declining to negative US$7.7 million, suggesting some investors continued accumulating Dogecoin during the price decline, while analysts indicated a recovery scenario would require the token to regain US$0.08 and move above US$0.085.

At the time of reporting, Dogecoin price was $0.0789.