Dogecoin has suffered a severe technical breakdown, falling sharply below key levels as a wave of risk aversion swept through digital markets following the Federal Reserve’s decision. According to Shaurya Malwa’s analysis, the asset has managed to identify a crucial short-term support at $0.1372, suggesting that immediate downside momentum may be exhausted following a session of intense selling.
Regarding the specific details of price action, the critical support of $0.1407 failed decisively around 15:00 UTC on December 12. This breakdown triggered an immediate liquidation accompanied by a massive 348% surge in selling volume, confirming a forced liquidation event rather than routine profit-taking. However, after printing the session low, the market structure sketched a V-shaped reversal, indicating that large participants stepped in during panic conditions to momentarily stabilize the price.
On the other hand, this behavior is not isolated but reflects the high-beta nature that meme cryptocurrencies possess in the face of macroeconomic shocks. Although the 25-basis-point rate cut to the 3.5%–3.75% range was widely expected by the market, internal division among monetary policy makers and renewed concerns about inflation generated nervousness. Thus, traders opted to reduce their exposure to speculative assets, causing Dogecoin to experience accelerated downside pressure while Bitcoin lost the $90,000 level.
Can Price Stabilization Prevent a Drop Towards Lower Liquidity?
Likewise, intraday volatility reached a significant 4.6%, with the asset moving through a $0.0064 range during the session. The steepest selling moment saw a volume spike of 1.11 billion tokens, which overwhelmed existing buy bids and pushed the price swiftly lower. Despite this, buyers defended the $0.1372 level again in late trading, reinforcing the idea that selling capitulation may be complete for now, shifting the dynamic from active selling to a stabilization phase.
Finally, Dogecoin is now at a technical crossroads where defending the current level is vital to avoid further losses. If the price fails to hold, the door opens to a drop towards the $0.1354 liquidity support, which could trigger another significant bearish leg. However, if bulls manage to reclaim the $0.1407 zone, this would signal a short-term trend repair and potential sideways consolidation, moving away from the immediate risk of a deeper correction on the chart.
