Why is Dogecoin price down today?
Dogecoin (DOGE) is underperforming its top-ranking rivals, having fallen over 8% in the last 24 hours to trade at $0.158.
What to know:
Dogecoin lost 41% of its value between March 3 and March 11.
The top memecoin established its lowest price in four months at $0.142 on March 11.
DOGE/USD daily price chart. Source: Cointelegraph/TradingView
Dogecoin’s downturn today and in recent months mirrors the panic across the memecoin sector.
DOGE’s technicals and onchain data hint at further declines.
DOGE leads memecoin slump
Dogecoin’s declines today are part of a broader bearish sentiment in the memecoin sector.
Key takeaways:
Shiba Inu (SHIB), the second largest memecoin by market capitalization, was down 7% over the last 24 hours to trade at $0.00001167.
Ethereum-based Pepe (PEPE) has dropped by approximately 8%.
Solana-based SPX6900 (SPX) posted the most losses among the top-cap memecoins, dropping by 28%.
Top memecoins’ performance. Source: CoinMarketCap
This bearish performance has seen the combined market capitalization drop by 7.5% over the last 24 hours, wiping out $4.54 billion from the market.
Memecoin market cap. Source: CoinMarketCap
The risk-off behavior from investors comes amid increasing negative sentiment fueled by macroeconomic uncertainties tied to President Trump’s tariffs.
This has spooked investors, pushing them away from volatile assets like memecoins.
Over $23 million in long DOGE positions liquidated
Dogecoin’s bearishness on March 11 is accompanied by significant liquidations in the derivatives market, signaling strong bearish pressure.
Key points:
Over $23.1 million worth of long DOGE positions have been liquidated over the last 24 hours alone, compared to $4.4 million in short liquidations.
Bullish traders are forced to sell their positions when long positions are liquidated.
Total DOGE liquidations. Source: CoinGlass
A total of $161 million in long DOGE positions have been liquidated since Feb. 24, accompanying a 41% drop in price over the same period.
Related: Memecoins are likely dead for now, but they’ll be back: CoinGecko
DOGE’s open interest (OI) has also dropped 37% in the past seven days, signaling a decline in trader participation.
DOGE futures open interest. Source: CoinGlass
The low OI and long liquidations suggest that leveraged traders are exiting their positions, triggering forced selling.
The funding rate has flipped negative, and its value at -0.0077% suggests a bearish outlook where short sellers are in control.
DOGE OI-weighted funding rate. Source: CoinGlass
Moving averages are not in Dogecoin’s favor
The ongoing drawdown comes after DOGE ran into a major resistance zone.
Notably:
A key barrier sits between $0.24 and $0.26, within which the 200-day simple moving average (SMA) at $0.247 and the 50-day SMA at $0.257 are currently.
Since Feb. 3, DOGE bulls have attempted to rise above this level three times, but on each occasion, the altcoin produced a lower high than the previous one.
This means that traders sell every time the price tries to cross this zone.
An additional barrier sits higher up at $0.3129, which is also the 100-day SMA.
DOGE/USD daily chart. Source: Cointelegraph/TradingView
On the downside, a key area of interest lies between the psychological level at $0.150 and the range low at $0.127, reached on Oct. 26, 2024.
This is an important level that bulls need to defend in order to avoid further losses to $0.10.
Note that when the DOGE bounced off this level in November 2024, it initiated a 227% rally to $0.480.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
