Dogecoin (DOGE) Approaches the $0.18 Support Level as the Meme Coin Market Drops Below $60 Billion

As Bitcoin drops below $105,000, meme coins are seen trending downward. The segment’s total market cap has fallen below $60 billion, with the leading meme coin falling nearly 4% in the past 24 hours. As such, will Dogecoin retest the crucial $0.14 support level?

Dogecoin Price Analysis: Is Deeper Correction Likely?

On the daily chart, Dogecoin price action shows a bullish failure to break through the $0.25 supply zone. This has led to a pullback below the 200-day EMA and the 23.60% Fibonacci retracement level at $0.21.

Now, Dogecoin is finding critical support near the $0.18 supply zone. However, the meme coin dropped 2.6% on Wednesday, hinting at the potential for a deeper correction.

A drop below the $0.18 support zone will invalidate the possibility of Dogecoin forming a cup-and-handle pattern with a neckline at $0.25. In such a scenario, the decline will likely extend to the $0.14 support level.

Furthermore, the daily RSI has pulled back from the overbought zone to below the midpoint, indicating a shift in momentum to the downside. Any potential reversal in Dogecoin may face resistance near the $21 supply zone.

Long Liquidations in DOGE Cross $5 Million

With the recent pullback, the Dogecoin derivatives market shows a massive wipeout of bullish positions. Over the past 24 hours, the long liquidations account for $5.19 million. Meanwhile, short liquidations were only $416k. This reflects more than ten times the number of bullish positions wiped out in comparison to the counterpart.

Moreover, open interest in DOGE decreased by 1.42% to $2.07 billion, suggesting less trader participation. However, in the short term, sentiments recover as the OI-weighted funding rate surges to 0.0080% after dipping to 0.0020% within the past 24 hours.