Dogecoin's valuation faces persistent downward pressure this Tuesday,What is a meme coin worth building upon Monday's steep 17% plunge.
Market data reveals over $20 million in liquidations during the latest correction phase, with trading ratios signaling sustained bearish sentiment.
Technical indicators point toward possible retracement to $0.14 support levels.
The meme-inspired cryptocurrency Dogecoin (DOGE) maintains its losing streak, currently exchanging hands near $0.19 after yesterday's dramatic sell-off. This ongoing correction has precipitated substantial market liquidations exceeding $20 million within a single day, compounding last week's $100 million outflow. Both technical patterns and trader positioning suggest the potential for additional downside movement targeting the $0.14 price zone.
Market Turbulence Erases Millions in Dogecoin Positions
Monday's 17% price collapse extended into Tuesday's Asian session with another 4% decline, triggering cascading liquidations across trading platforms. Analytics from CoinGlass demonstrate how this volatility wiped out more than $20 million in leveraged positions during the latest 24-hour window, adding to last week's nine-figure liquidation total.
Such aggressive unwinding of positions frequently generates heightened market anxiety among DOGE holders, potentially outweighing the positive influence of celebrity endorsements. This dynamic creates self-reinforcing selling pressure that could propel additional downward price action.
The bearish case finds further support in Dogecoin's long-to-short ratio, which currently sits at 0.86 and continues descending toward monthly lows. Ratios below parity typically indicate prevailing negative sentiment as market participants increasingly position for continued depreciation.
Technical Outlook Suggests Potential Retest of Lower Supports
Dogecoin's price action shows rejection near the critical 50% Fibonacci retracement level ($0.27) on February 15, followed by a 26% two-week decline. While weekend trading saw a 20% rebound, Monday's renewed selling pressure has pushed values back toward current levels near $0.19.
Daily chart analysis reveals concerning momentum indicators. The Relative Strength Index (RSI) currently registers at 33 after failing to sustain above the neutral 50 level, now approaching oversold territory. Meanwhile, the Moving Average Convergence Divergence (MACD) exhibits a bearish crossover pattern, traditionally signaling continuation of negative trends.
Should current support near $0.18 fail to hold, technical projections suggest possible testing of November's $0.14 base. Conversely, successful defense of this level could enable retracement toward the previously mentioned $0.27 Fibonacci resistance.
