Dogecoin (DOGE) fell after failing to hold the $0.124 support zone, triggering a wave of selling that pushed the token down to $0.122 and amplified the bearish pressure.
The Dogecoin token, DOGE, broke through its support level and dropped to $0.1243. This not only allowed the token to potentially recover to its previous level but also triggered a wave of selling by large holders.
Intraday impressions included a move of approximately 5%, with brief dips to $0.123 and $0.1226 before the token stabilized. Trading volume increased during the drop, which market participants interpreted as active distribution.
One of the biggest consequences of the failure to hold its support level was the massive liquidation it caused in the derivatives markets, contrary to the corrections the token had been experiencing in previous days. The rallies during the day were driven by outflows from large portfolios, rather than inflows from new users.
Will the price of Dogecoin continue to fall?
One of the main questions is how far the price of DOGE will fall and what its recovery level will be. This means that the price is currently hovering around stable levels that will determine how the token reacts in the short term.
Immediate resistance is located at the $0.1243 level, with more expected supply near $0.1255 and the previous consolidation zone of $0.126–$0.127. On the bearish side, traders are viewing $0.1222 as the first line of defense, and a break below this level would increase the likelihood of a test of the psychological floor of $0.12.
The immediate consequence for market participants is increased risk in long positions and a lower tolerance for leverage. The reduction in relative strength compared to other crypto peers suggests that portfolio managers and crypto market makers may want to reduce their exposure until conviction returns.
Looking ahead, investors will be focused on whether $0.1222 holds, as a decisive break below that level would likely push DOGE toward $0.12 and signal a resolution of the consolidation to the downside. Conversely, a clean rally to $0.1243 would neutralize the short-term bearish bias and pave the way for a retest of $0.1255.
