How 9/10 Meme Coins Are Crashing Amid Liquidation Surge—Dogecoin in Focus

Dogecoin has become the latest casualty in a brutal meme coin selloff driven by accelerating liquidation flows across crypto markets. DOGE plunged from $0.127 to $0.12 recently, recording a -4.31% drop over the last 24 hours as forced selling waves swept through the broader meme coin ecosystem. The token’s breakdown through critical support levels came amid a dramatic surge in trading volume, signaling that this isn’t just quiet profit-taking—it’s a forced unwinding of overleveraged positions hitting the entire meme coin cohort.

The liquidation pressure has been particularly brutal for high-beta tokens. As risk appetite drifted lower across the market, traders systematically reduced their exposure to speculative assets, pushing trading volumes to multi-day highs even as prices collapsed. DOGE-specific flow data revealed elevated transaction activity, suggesting this move represents active position adjustments rather than simple indifference. Longer-term holders have stepped back to watch for clearer stabilization signals, while short-term traders continue to aggressively sell any bounce.

Meme Coins Under Siege as Forced Selling Accelerates

The broader meme coin market has been hit harder than most asset classes during this liquidation event. The combination of macro weakness, forced de-risking, and positioning cleanup has created a hostile environment for tokens that thrive on retail enthusiasm and leverage trading. DOGE’s current weakness reflects this systemic pressure—this isn’t an isolated DOGE story, but rather a symptom of how brutal conditions have become for the entire meme coin sector.

Volume surged to extreme levels recently, with daily transaction counts reaching multiples of typical trading levels. This massive volume accompanied the price breakdown, a telltale sign that institutional and algorithmic selling, not retail panic alone, is driving the move. The volume profile suggests ongoing liquidation cascade dynamics where one break triggers the next round of forced selling.

DOGE’s Technical Structure Confirms Deeper Pressure

The technical picture has deteriorated sharply. Dogecoin printed a textbook bearish pattern—a series of failing rallies followed by new lows—confirming a downtrend that traders are now closely monitoring for signs of capitulation or consolidation.

The breakdown occurred decisively below the $0.1254 support zone, a level that had been holding intraday rallies. On the bounce from $0.1245 to $0.1253, traders initially hoped for a reversal, but that rebound evaporated quickly. The bounce lacked real follow-through conviction, suggesting it was mostly short-covering (traders buying back borrowed tokens for quick gains) rather than fresh demand entering the market.

Momentum indicators on longer timeframes remain deeply bearish despite some oversold conditions emerging on shorter charts. This combination typically produces extended choppy consolidation rather than immediate snapback rallies. The resistance zone has shifted upward to the $0.126–$0.127 area, where sellers have repeatedly stepped in to cap any bounce attempt.

Support Levels and Consolidation Zones: Where DOGE May Stabilize

The immediate support zone sits at $0.124–$0.123. Holding this area would allow sideways price action and potential base-building activity—the market’s way of shaking out weak hands before the next directional move. However, a clean break below $0.123 would open the door to the next downside targets at $0.12 and $0.115.

For now, DOGE remains pinned near $0.12, exactly where bulls need to see stabilization patterns emerge to suggest the selloff has exhausted itself. Each failed bounce reinforces the bearish structure, but the extremely compressed volatility and extreme price levels also hint that some form of consolidation may be constructive for positioning the next breakout—either direction.

Trading Strategy: Key Levels for Meme Coin Traders

This remains a bounce-selling environment. As long as DOGE trades below the $0.126–$0.127 resistance zone, rallies will likely attract sellers rather than buyers.

Holding support matters: If DOGE stabilizes and consolidates between $0.124–$0.123, this sideways action could serve as a building block for a potential reversal. Watch for three-day consolidations or narrowing ranges as signals that the forced selling is abating.

Downside watch: A decisive break below $0.123 puts $0.12 and $0.115 firmly in focus as next downside targets.

What needs to change: To meaningfully shift the tape from “sell rallies” to “buy dips,” DOGE must reclaim and hold above $0.126—something it has failed to achieve since the initial breakdown.

Broader Meme Coin Market Signals

Beyond DOGE, the meme coin sector is showing broader stress. The 9/10 meme coin weakness reflects the segment’s sensitivity to leverage and sentiment swings. Projects like Pudgy Penguins (PENGU) have shown relative resilience due to their diversified utility model spanning retail partnerships, games, and NFTs—but even PENGU-adjacent tokens have felt the liquidation pressure.

Meanwhile, XRP bucked the weakness trend with ETF inflows hitting $91.72 million this month, suggesting institutional buyers are selectively picking bottoms in the broader market. This divergence underscores how liquidation waves are discriminating between quality assets and pure-play speculation—a pattern worth monitoring as meme coins face continued scrutiny.

The takeaway: Meme coin traders should treat this as a defining moment. Capitulation typically comes when even experienced traders have given up waiting. DOGE’s current price action will either confirm that capitulation or signal that more downside is needed.