The market fall has severely impacted DOGE: Is a larger adjustment on the horizon?

Source: CryptoNewsNet Original Title: Market Downturn Hits Dogecoin Hard: Is a Larger Correction on the Horizon? Original Link: Similar to major assets in the cryptocurrency market, Dogecoin (DOGE) is facing persistent selling pressure, as this meme coin has fallen below several key technical levels with the worsening weakness in the broader crypto market.

The recent decline occurred against the backdrop of capital outflows, weakening market structure, and waning speculative interest, raising questions about whether a deeper adjustment is underway.

The price of DOGE shows a downward trend on the daily chart.

Dogecoin breaks key support, selling pressure intensifies

After breaking through the bullish trend line on the hourly chart, Dogecoin has fallen below a significant support area, continuing its downward trend for several days. The price is currently trading below the 100-hour simple moving average, close to $0.13, with the MACD momentum strengthening in the bearish zone, while the RSI remains below 50.

The coin has dropped over 8% in the last 24 hours, breaking through multiple Fibonacci retracement levels and failing to regain the recent swing 23.6% level.

Analysts point out that recent resistance is near the 50% retracement of the recent decline. A close above this threshold is needed to alleviate short-term downward pressure.

The failure to break through these resistance areas has kept momentum tilted towards the sellers. If the market cannot stabilize, it is likely to retest recent lows.

Weak liquidity and contraction of derivatives deepen market pressure

The liquidity in the spot market shows a continuous distribution. Recent data indicates an outflow of $5.7 million, continuing the trend of reduced accumulation among large holders over the past few months. The inflow that previously supported a price rebound to $0.30 has given way to a stable downward trend, reflecting a decline in confidence among major participants.

The derivatives market has reinforced this weak structure. Open interest has fallen by more than 9% as traders reduced positions rather than increased exposure during the decline.

The long-short ratio shows a slight bias towards the long side, but price action repeatedly invalidates these positions, triggering a wave of long liquidations whenever DOGE attempts to break through the short-term moving average.

These repeated failed bounces have kept Dogecoin locked below the downward EMA between $0.154 and $0.202, and analysts say this structure still looks firmly bearish.

Disappointment in DOGE ETF and Increased Pressure from Market Rotation

The recently launched ETF for Dogecoin has failed to provide support. The inflow from major issuers slightly exceeded $2 million, which is far below expectations and significantly weaker than the first-day inflows seen by Bitcoin or Ethereum funds.

Weak demand indicates that institutional interest in this meme coin is limited, exacerbating negative sentiment.

Meanwhile, the market rotation is shifting towards networks that are practical and payment-driven. The decline in trading volume and the sluggish activity of whales suggest that traders may be moving away from meme assets and towards projects that show faster adoption rates and real use cases.