Dogecoin has experienced a severe liquidation event, with traders facing losses exceeding $1.2 million in just four hours. The meme cryptocurrency recorded a 2,563% liquidation imbalance as the broader digital asset market entered a sharp downturn.
Data from CoinGlass reveals that long-position traders bore the brunt of the losses. The cryptocurrency fell from a daily peak of $0.1263 to $0.1216 within hours. Growing geopolitical tensions prompted investors to move capital away from digital assets toward traditional safe havens such as gold.
Dogecoin currently trades at $0.1260, marking a 2,02% increase in the last 24 hours. Trading volume has increased 23.04% to reach $1.3 billion, suggesting sustained market interest despite the price decline.
Technical Indicators Point to Oversold Territory
The Relative Strength Index for Dogecoin sits at 23.7, indicating extreme oversold conditions. Under typical market circumstances, such readings often precede price recoveries. However, the ongoing market-wide selloff has prevented any meaningful upward movement.
Technical analyst Ali Martinez has identified potential downside risks for the meme coin. His analysis suggests Dogecoin could face further declines, with $0.073 representing the next significant support level. Such a move would add another zero to the cryptocurrency's price, marking a substantial decrease from current levels.
The meme coin started 2026 with momentum but now faces correction pressures. The combination of market-wide weakness and internal technical challenges has created a difficult environment for price recovery.
Short-position traders also recorded losses, though considerably smaller. Bears who bet against Dogecoin lost $45,070 during the same four-hour period. This indicates the liquidation event affected traders on both sides of the market.
Market Participants React to Losses
Billy Markus, co-founder of Dogecoin, recently responded to news of $150 billion in crypto market losses with characteristic sarcasm. His brief "oh" comment reflected his typical indifferent stance toward market volatility. Markus has maintained this approach throughout various market cycles.
Not all market participants share his detached perspective. As previously reported, a Bitcoin whale recently made a bold move in Dogecoin amid turbulent conditions. The trader purchased 15.6 million DOGE tokens valued at over $2.1 million using 10x leverage.
