Dogecoin, Under High Activity, Under Pressure for Collective Closure, Weakening by 3%

Dogecoin has experienced a significant decline in recent days due to massive mass liquidation activities. The increasing liquidation pressure in the meme coin market and the active participation levels of investors have led to widespread position closures, pushing DOGE below critical support levels. This period, which began in the last week of 2026, has not only affected price movements but also significantly influenced the behavior patterns of market participants.

Mass Liquidation Activities Pull DOGE Below Support Levels

Dogecoin saw a sharp decline in the last week of January amid intense trading activity. The price, starting from $0.127, retreated to around $0.120, representing a 3.24% weakening, signaling a period of high volatility in the market. The breach of the $0.1254 support zone clearly indicated the intensity of mass liquidation movements.

During this decline, high activity accompanied by trading volume suggested a systematic position liquidation process rather than a simple wave of selling. The 24-hour trading volume of $19.56 million was significantly higher than the recent average. Increasing pressure in liquidity pools led to the rapid breaking of short-term supports, triggering a chain reaction that caused more selling.

Rapid Closure of Trading Activity Accelerated Price Drop

Analysis of market participant behavior revealed that the closing activity was not merely due to a decrease in risk appetite but rather a strategic position adjustment process. The high activity-driven closing movements indicated increased overall pressure on risk assets. In the meme coin sector, such rapid shifts in activity often foreshadow more persistent declines.

Traders’ selling decisions were divided into two main groups: short-term investors taking profits and institutional flows making more permanent position adjustments. Despite the increase in trading volume, the price failed to recover, clearly remaining fragile. The price, which was pulled down to $0.1233 during the session, was in a notably vulnerable position.

Where Are the Technical Levels and Consolidation Zone?

Dogecoin’s technical structure clearly indicated that the downward trend was continuing. Resistance between $0.1260 and $0.1270 was a zone repeatedly challenged by sellers, and failed rallies demonstrated the strength of this area.

The consolidation zone was between $0.124 and $0.123. As long as these levels are not broken, sideways movement and possibly forming a bottom remain likely. However, a clear breakdown below $0.123 would target levels of $0.12 and subsequently $0.115.

Momentum indicators on short-term timeframes, despite showing slight oversold signals, remained weak on higher timeframes. This combination pointed to a period of choppy movement rather than an immediate trend reversal.

Short-Term Rebound Attempt Failed

At the end of the session, DOGE made a brief attempt to recover. With a sharp increase in trading volume, the price jumped from $0.1245 to $0.1253. However, this movement lacked stability. The price quickly retreated back to the $0.1250 level, indicating continued consolidation.

This failed rebound sent an important signal to traders: it was primarily a closing of short positions rather than genuine buying demand. Without a new wave of demand, returning to previous levels would be difficult.

Critical Signal Points for Traders

Monitoring a few trigger points in this environment is crucial:

• Holding above $0.126: DOGE needs to break and sustain above this level to escape the downtrend. It has yet to do so.

• $0.124 level: Holding this level would keep the door open for sideways movement and potential bottom formation.

• Break below $0.123: Falling below this point would bring targets of $0.12 and $0.115 into focus.

• Volume support: Sustained movement requires volume to support the trend. Temporary moves are accompanied by sharp volume declines.

Dogecoin’s near-term outlook remains uncertain. The selling trend is still dominant, but the downward momentum appears to be slowing. Traders should continue to monitor DOGE in the last week of January, as the technical structure is in a position ready for a breakout at any moment.