The recent Dogecoin price drop to 12 cents, reported this January 21, 2026, by Shaurya Malwa, has caused a significant shake-up in the sector. This retreat occurred after the loss of vital technical support, triggering a wave of forced liquidations that affected traders, leaving the asset vulnerable to new external selling pressures that persist throughout the market today.
This bearish move, which was accompanied by a significantly high trading volume, confirms a negative change in the short-term structure. By breaking the 0.126 dollar base, the digital asset accelerated its descent toward lower levels, trapping multiple retail investors who were expecting a technical rebound that ultimately failed to materialize during the current trading session of this Wednesday.
Likewise, the former support located between 0.126 and 0.127 dollars has now transformed into a technical resistance difficult to overcome soon. The selling pressure intensified quickly, as the derivatives market reacted aggressively to the lack of relative strength shown by the popular currency, whose trend seems to have deteriorated in a very concerning way for strategic investors.
The fragility of speculative assets in the face of global volatility
On the other hand, this decline in Dogecoin fits into a context of generalized weakness within the criptocurrencies, where high-risk assets suffer the greatest impact. Since there was no specific catalyst, experts suggest that the move responds to a necessary cleanup of leveraged positions after the previous stagnation observed during the last weeks of active trading across the globe.
Nonetheless, the loss of confidence in the previous consolidation level has left the asset vulnerable to further corrections during this session. The fact that the price remains below its previous floor indicates that sellers are actively defending any recovery attempt, drastically limiting the possibilities of observing a bullish trend change in the immediate future despite the buying interest emerging.
Will the 0.124 dollar level be able to act as definitive support?
Therefore, traders currently observe the 0.124 dollar point as a fundamental line in the sand to avoid further losses. If this threshold fails to contain the fall, there is a real risk that the price will slide toward the critical zone of 0.123 to 0.122 dollars, intensifying the bearish sentiment that currently dominates the entire market during this week.
It is also important to consider that, to alleviate negative pressure, the asset must reclaim the initial breakdown zone convincingly. In this way, only a return above 0.127 dollars would allow the technical outlook to stabilize, while the market awaits signals of stabilization in global risk sentiment for the coming trading sessions in the international and digital financial markets.
