Dogecoin (DOGE) is at a pivotal juncture, experiencing a dramatic surge in price and liquidations while simultaneously showing technical weakness that threatens a deeper correction. The meme coin recently triggered a massive liquidation event, with data from CoinGlass showing a staggering 4,578% liquidation imbalance over four hours. This event wiped out nearly $262,000 from short positions as DOGE's price surged over 3%, climbing from $0.1214 to an intraday high of $0.1273. The rally was partly fueled by a broader market rebound led by Bitcoin (BTC), which climbed back to the $89,000 mark.
Concurrently, Dogecoin's trading volume spiked by 29.61% to $1.24 billion, indicating heightened retail interest. However, this bullish momentum is being challenged by a deteriorating technical structure. Analysts note that DOGE maintains a bearish macro structure of lower highs and lower lows. Crucially, bullish volume is fading as the price consolidates near the key $0.12 high-timeframe support level. This divergence between price stability and weakening demand is a classic warning sign that often precedes a breakdown.
The risk of a capitulation event is increasing. Extended consolidation near the $0.12 support has led to a buildup of liquidity just below this level. A decisive breakdown could trigger a cascade of stop-loss orders, accelerating a sell-off toward the channel's low support. The Relative Strength Index (RSI) sits at 43.7, offering no clear directional bias. For bulls to regain control, DOGE must hold above the $0.1243 support level; a failure could lead to a sharp decline. Conversely, sustained high volume and a reclaim of higher price levels could pave the way for a potential 30% rally toward $0.16.
