DOGE meme coin is pushed down to $0.12 due to liquidation pressure amid a meme coin frenzy

Dogecoin (DOGE) is caught up in a widespread wave of crypto market liquidations, intensifying the overall bearish sentiment across meme coins. As of January 29, 2026, DOGE is trading around $0.12, down 2.67% over the past 24 hours. Increased liquidation activity in recent days and weakening investor sentiment toward high-risk assets have led DOGE to break support levels, further strengthening its bearish structure.

Rapid Meme Coin Decline Amid Broad Liquidations

The overall crypto market downturn has resumed, leading to a rise in liquidation activity. Meme coins have been among the hardest-hit asset classes during this market correction, with trading volumes increasing despite continuous price declines. This indicates traders are quickly reducing their exposure.

Flow data related to Dogecoin suggests that the ongoing activity is more about position adjustments than mere disinterest. The sustained high trading volume confirms this. Recent volatility has prompted market participants to adopt a cautious stance; short-term traders are selling during rebounds, while long-term investors await clear bottom signals.

Meanwhile, a sharp rebound in the US dollar and strength in commodities (especially gold and overvalued silver and copper) are dominating the entire crypto market. Bitcoin (BTC) is moving near $88.22K, Ethereum (ETH) at $2.95K, Solana (SOL) at $123.24, and BNB at $900, all showing weakness, which suggests DOGE’s bearishness is part of a broader market structure.

Bearish Structure in the DOGE Chart

During the 24 hours ending January 23, DOGE started at $0.1271 and fell to $0.1250, breaking the support level at $0.1254 with the help of increased volume. The decisive decline occurred during the US session, when trading volume reached 556 million tokens, about 124% above the 24-hour average, pushing the price down to a session low of $0.1233.

This downward pattern shows DOGE continuously forming lower highs and lower lows. The upper resistance is firmly positioned around the $0.1260–$0.1270 range, where multiple sessions have seen repeated selling pressure.

In the short-term chart, DOGE attempted a limited rebound. In the hours just before the close, the price recovered from $0.1245 to $0.1253, temporarily breaking through the intraday downtrend line amid a surge in volume. However, this movement was short-lived, and DOGE retreated back to around $0.1250, indicating that the rebound was more about covering existing short positions than genuine demand.

Momentum indicators show oversold signals emerging on the short-term chart, but the higher timeframes still maintain a bearish outlook. This suggests a likelihood of continued volatile sideways movement rather than an immediate trend reversal.

Key Price Levels and Resistance Analysis

Currently, DOGE’s price structure consists of multiple support and resistance levels:

• Upper Resistance: $0.126–$0.127, with strong selling presence
• Mid Support: $0.124–$0.123, where sideways consolidation may occur
• Lower Support: Below $0.123, with potential targets at $0.12 and $0.115 if further decline occurs

The $0.1250 level is a critical zone for short-term traders, as the price is attempting to stabilize here. However, for a meaningful rebound, DOGE needs to recover and sustain above $0.126, which remains an unresolved challenge.

Trader Focus and Scenario Outlook

From a short-term perspective, DOGE continues to see selling pressure during rallies, but downward momentum is gradually weakening. Traders should consider the following scenarios:

Bearish Scenario: If DOGE remains below $0.126–$0.127, any rebound is likely to be sold into. A clear move below $0.123 could retest $0.12 and even $0.115 levels.

Sideways Scenario: Holding the $0.124–$0.123 range could lead to consolidation and sideways correction, signaling potential improvement in the medium- to long-term supply-demand dynamics.

Bullish Reversal: A significant trend reversal would require DOGE to recover and hold above $0.126. Given the current bearish structure, this appears unlikely in the near term.

Amid broad market liquidations and meme coin weakness, DOGE’s future will likely be closely correlated with the direction of major assets like Bitcoin. Until liquidation pressures ease and market sentiment improves, high-beta meme coins like DOGE are expected to face additional downward adjustments.