Dogecoin (DOGE) experienced a dramatic market event, significantly underperforming Bitcoin in terms of liquidation pressure. Data from CoinGlass revealed that within a 60-minute period, Dogecoin's liquidation imbalance spiked by a staggering 23,354%, far surpassing Bitcoin's figures for the same timeframe. This intense selling pressure resulted in Dogecoin bulls losing over $2.05 million out of a total liquidation of $2,058,740.
The catalyst for this downturn was a broader market correction, with the crypto market falling by 2.67% after Bitcoin failed to breach the $94,000 resistance level. This stall negatively impacted altcoins, triggering a cascade of profit-taking and sell-offs for DOGE. The memecoin's price rapidly dropped from a peak of $0.1485 to trade around $0.1398, marking a 5.42% decline over 24 hours. Consequently, trading volume plummeted by 25.43% to $1.66 billion, erasing previous weekly gains of 15.67%.
Analyst Ali Martinez amplified concerns by highlighting critical on-chain weaknesses. Using UTXO Realized Price Distribution data, Martinez pointed out that DOGE is trading in a "thin liquidity zone" around $0.14 with very little underlying support. His analysis suggests the next major accumulation and support area is significantly lower, at approximately $0.073. He warned that if DOGE fails to hold above its current zone, it risks a sharp decline, potentially "adding a zero" to its price.
The event has cast doubt on Dogecoin's earlier bullish signals for 2026, including a golden cross setup. The memecoin's immediate recovery is now seen as heavily dependent on Bitcoin's next price move and DOGE's ability to hold the $0.135 support level. The overall market sentiment remains bearish, with investors awaiting broader U.S. policy direction for clarity.
