Dogecoin (DOGE) experienced another straight day of depreciation when it reached $0.19 during Tuesday trading following its notable 17% price reduction on Monday. A sudden sell-off across the market resulted in more than $20 million in liquidations during the last day, along with $100 million in liquidations throughout the week. The market demonstrates ongoing selling pressure because technical indicators suggest DOGE will drop to $0.14.
Dogecoin faces heavy liquidations amid price drop
Dogecoin recorded a 4% decline during the Asian trading session, maintaining its downward momentum. According to CoinMarketCap, the price currently stands at $0.1905, reflecting a 13.75% drop over 24 hours. The market capitalization fell by the same percentage to $28.26 billion, while trading volume dipped 36.35% to $2.62 billion.
CoinGlass data observes that market liquidations reached historic high levels when more than $20 million worth of assets were sold on the market in a 24-hour period. The occurrence of extensive market liquidations leads to widespread Fear, Uncertainty, and Doubt sentiments that produce more market sellers.
Leading figures have spoken in favor of the market, but public sentiment is still pessimistic. The market capitalization ratio sits at 9.45%, which demonstrates that market operations have slowed because prices have decreased.
Technical indicators show bearish momentum
According to trading view data, the Relative Strength Index (RSI) marks 33.71 during market observations of DOGE, whereas the indicator stands close to oversold levels. The market indicator shows that the selling pressure continues as DOGE keeps values above 30.
The Moving Average Convergence Divergence (MACD) shows bearish momentum, with the MACD line at -0.02154 remaining below the signal line at -0.02220. The downward histogram trend suggests continued weakness.
Dogecoin faces immediate support at $0.185.
The price may deteriorate to reach $0.150 if this bearish trend sustains. Falling prices may reach the $0.140 mark if selling pressure stays high. The reversal to a bullish trend demands Dogecoin to recover to a value of $0.220. The MACD measuring indicator shows bullish signals that could signal price reversal yet the current market outlook indicates additional downward price risks.
