Dogecoin’s Descent: Is This the Start of a Financial Black Hole?

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Dogecoin drops 5 percent to $0.125, dropping below $0.126. Long liquidations swell with the memecoin following wider crypto flimsiness and technical collapse.

Ah, another Tuesday. Who knew it was a day for the Shiba Inus to panic-sell their digital bones? Dogecoin fell about 5%, and beneath a critical support level, which, let’s be honest, was about as reliable as a house of cards made of Jell-O. The derivatives markets, ever the drama queens, staged a full-blown liquidation party. Champagne problems, am I right?

The digital asset fell from $0.128 to $0.125. The near-support at about $0.126 failed after the third attempt, because apparently, “third time’s the charm” only works in fairy tales. Selling pressure increased with the loss of positions-because nothing says “fun evening” like watching your portfolio evaporate faster than my willpower at a candy store.

This failure occurred during high-volume trading, according to CoinDesk, the crypto world’s favorite gossip site. Previously occurring support between $0.126 and $0.127 has changed to resistance, and any rebound is currently met with stiff supply in the new resistance zone. Sounds like a bad breakup, but with more decimals.

Liquidation Cascade Fuels Sharp Decline

The sell-off wasn’t due to news; it was a matter of positioning and liquidation pressure. DOGE was unable to hold its consolidation floor, which is either a metaphor for adulthood or a technical term. After falling below $0.126, the speed of selling increased. Late longs were offside on several exchanges, and forced exits increased the downward impetus to the utmost extent. Imagine trying to exit a sinking boat while wearing Crocs.

DOGE reflected overall crypto market vulnerability, causing losses in the course of the session. The coin didn’t display much relative strength against peers, which is less surprising than finding someone who still uses a flip phone.

Volume increased abruptly into the breakdown, which implies forced liquidation action, as opposed to a normal shallow dip. Because who needs subtlety when you can have chaos?

You might also like: CFTC Chair Michael Selig Signals Lighter Crypto Oversight Under ‘Future Proof’ Plan (Translation: We’re winging it, but now with fewer rules!)

Technical Breakdown Confirms Bearish Shift

DOGE dropped out of the area of $0.1258 to 0.1260, which underlines a bearish turn in structure. The sellers defended rebounds aggressively at or around 0.125, like they were protecting their last bag of chips. Price is approaching $0.123 on the downward slope and has not moved since reaching almost 0.125. The asset is languishing below past support, which is poetic if you’re a pessimist.

Traders determined the near-term critical level of $0.124, and trading in that area may stabilize the situation. A downward break will lower it to additional losses at $0.122. The market will have to go back to $0.126 to 0.127 to relieve the immediate downward pressure. In the meantime, the technical picture is bearish. When $0.124 does not hold, the momentum will continue to the lower level with the aim of hitting $0.123-0.122. Bears now hold the price action. Congrats, they’ve won the crypto lottery.

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2026-01-21 15:32