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Why is Dogecoin price down today?

3 Mins Read

The price of DOGE has decreased by 8% as of March 11, with rejection from a significant resistance level indicating potential for a more substantial correction in the near term.

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Dogecoin (DOGE) is falling behind its top competitors, having plummeted over 8% in the last 24 hours, currently priced at $0.158.

Key insights:

DOGE/USD daily price chart. Source: TradingView

DOGE leads the drop in memecoins

The decrease in Dogecoin’s value today reflects a wider negative trend within the memecoin market.

Important information:

  • Shiba Inu (SHIB), the second-largest memecoin by market cap, has also experienced a decline of 7% over the past 24 hours, trading at $0.00001167.

  • Pepe (PEPE), which operates on the Ethereum platform, saw a decrease of around 8%.

  • SPX6900 (SPX), based on Solana, recorded the highest losses among top memecoins, suffering a 28% drop.

Performance of top memecoins. Source: CoinMarketCap

Memecoin market capitalization. Source: CoinMarketCap

  • Investor caution has been heightened due to a prevailing negative outlook, exacerbated by macroeconomic uncertainties surrounding tariffs from President Trump.

  • This has frightened investors off from high-risk assets such as memecoins.

More than $23 million in long DOGE positions liquidated

The bearish trend for Dogecoin on March 11 is accompanied by substantial liquidations in the futures market, indicating strong downward pressure.

Key points:

  • Over $23.1 million in long DOGE positions were liquidated within the past 24 hours, in contrast to $4.4 million in short liquidations.

  • Bullish investors have had to liquidate their long positions as a result of these liquidations.

Total DOGE liquidations. Source: CoinGlass

Related: Memecoins may be down for now but will return: CoinGecko

  • The open interest (OI) for DOGE has also decreased by 37% in the last week, indicating reduced participation from traders.

DOGE futures open interest. Source: CoinGlass

  • A low OI coupled with long liquidations suggests that leveraged traders are stepping back, leading to forced selling.

  • The funding rate has turned negative, currently measured at -0.0077%, indicating a bearish sentiment where short sellers dominate.

DOGE OI-weighted funding rate. Source: CoinGlass

Moving averages not favoring Dogecoin

The current downturn follows Dogecoin hitting a significant resistance level.

Notably:

  • A crucial barrier lies between $0.24 and $0.26, where the 200-day simple moving average (SMA) stands at $0.247 and the 50-day SMA at $0.257.

  • Since February 3, Dogecoin has attempted to break above this zone three times, but each time it has registered a lower high than the last.

  • This indicates that sellers are active whenever the price attempts to breach this level.

  • An additional resistance level exists at $0.3129, which coincides with the 100-day SMA.

DOGE/USD daily chart. Source: TradingView

  • On the downside, a key support zone is identified between the psychological level of $0.150 and the range low of $0.127 established on October 26, 2024.

  • This area is critical for bulls to defend to prevent declines toward $0.10.

  • It’s worth noting that when Dogecoin previously rebounded from this level in November 2024, it triggered a rally of 227% to $0.480.

This article does not provide investment advice or recommendations. Every trading and investment decision carries risk, and readers should conduct their own research before acting.

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