Dogecoin’s Selloff Tests Long-Held Beliefs as Traders Debate Capitulation or Reset

[Ben Graham]

Dogecoin’s (DOGE) latest selloff has forced traders to confront a question that has followed the meme coin since its peak years. Is this another temporary washout, or a deeper reset in how the market values DOGE?

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Over the past 24 hours, Dogecoin slipped sharply below levels that had held through weeks of consolidation, erasing a sense of stability that many participants had grown accustomed to. The move unfolded without a single defining catalyst, instead reflecting broader weakness across higher-beta crypto assets.

At the same time, DOGE’s highly visible online presence has remained active, creating a contrast between weakening price action and persistent cultural relevance.

Breakdown Below Key Support Shifts Short-Term Structure

In the past 24 hours, Dogecoin (DOGE) fell about 5.5%, sliding from roughly $0.1367 to near $0.129, and briefly trading as low as $0.1266.

The drop pushed the price below the $0.1370 and $0.1300 support zones, levels that had defined the lower boundary of its recent range. Trading volume surged to around 1.36 billion tokens, more than 180% above average, suggesting the move was driven by active selling rather than gradual drift.

Technically, DOGE is now trading below its 100-hour simple moving average, with a bearish trend line forming near $0.1340. Attempts to reclaim $0.1300 have so far failed, reinforcing that level as immediate resistance.

Market participants note that once intermediate supports gave way, bid depth appeared thin, allowing the DOGE price to move lower with limited pauses.

Sentiment Signals Clash With Weak Dogecoin Price Action

Despite the selloff, Dogecoin remains a popular online presence. The official Dogecoin ecosystem account recently acknowledged renewed public endorsements, including comments from a high-profile entrepreneur, and resurfaced cultural callbacks tied to DOGE’s 2021 run.

From a positioning standpoint, Dogecoin remains significantly below its all-time high and has declined sharply on a year-to-date basis. Open interest has also declined significantly from earlier 2025 peaks, pointing to reduced speculative participation.

For some traders, this is evidence of capitulation; for others, it signals a quieter phase where excess leverage and hype are being flushed out.

Levels That Now Matter for Traders

In the near term, market focus is centered on the $0.1290–$0.1280 zone. Holding above this area could allow DOGE to consolidate, while a sustained break lower may expose support near $0.1250 and potentially the $0.1200 region.

On the upside, a reclaim of $0.1300 would be the first indication that downside momentum is easing, though former supports above $0.1340 remain key hurdles.

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Whether this move marks the end of an era or a broader reset remains to be seen. For now, Dogecoin remains in a fragile stabilization phase, where confirmation, rather than conviction, is driving trading decisions.

Cover image from ChatGPT, DOGEUSD chart from Tradingview