The popular canine-themed coin has experienced a significant 7% pullback, falling from $0.137 to settle at $0.127 recently. This downward move comes as meme-type coins show underperformance compared to the rest of the digital asset market during the current session.
According to analysis by Shaurya Malwa, the trigger for this technical drop was the asset’s repeated failure to break through the resistance located in the $0.137 to $0.138 range. This situation triggered a high-volume liquidation cascade that, for a moment, pushed the value toward the critical $0.125 zone.
On the other hand, selling pressure intensified due to movements from large holders, known as whales, who transferred large amounts of assets to exchange platforms. Since confidence weakened rapidly after failing to reclaim higher levels reached earlier this January 2026, sellers took control of the price action.
Likewise, trading volume increased aggressively during the crash, which is consistent with forced selling processes rather than an organized distribution of assets. In this way, the market has entered a compression phase near support levels, indicating that immediate liquidation pressure has eased for now.
Will the asset manage to reclaim its key resistance level to avoid a further drop toward $0.12?
Inasmuch as the Dogecoin cryptocurrency price remains below its former support, this level will now act as a difficult psychological and technical barrier to cross. However, if the current support at $0.127 manages to withstand the attacks, traders could begin a gradual recovery toward more stable zones.
Therefore, investors are closely watching whether this event represents stabilization after the flushing of leveraged positions or if it is the start of a deeper bearish trend. In this way, the $0.137 level is consolidated as the main target that the asset must reclaim to confirm a true reversal.
The outlook for the largest meme cryptocurrency by capitalization remains uncertain as risk appetite diminishes globally. Traders are watching the $0.127 support as the last line of defense before seeking local lows. While the market attempts to stabilize, caution is the predominant recommendation among technical analysts in the sector.
Finally, Dogecoin’s behavior will serve as a thermometer for the rest of the memecoin sector during the remainder of the week. Reclaiming lost levels is vital to restore the confidence of retail investors in the short term. If the current liquidation floor breaks, the risk of a deeper slide toward levels not seen in months will increase considerably.
