Dogecoin’s Selloff Tests Long-Held Beliefs as Traders Debate Capitulation or Reset

Overview

Dogecoin’s recent selloff has prompted traders to question the future valuation of the popular meme coin. This decline comes after a period of relative stability, raising concerns about whether the market is experiencing a temporary washout or a more significant reset in DOGE’s value.

Recent Price Movement

In the past 24 hours, Dogecoin experienced a notable decline of approximately 5.5%, dropping from around $0.1367 to near $0.129, with a brief dip to $0.1266. This movement pushed DOGE below key support levels of $0.1370 and $0.1300, which had previously defined its trading range. The sudden drop in price was not attributed to a single defining event but rather reflected a broader weakness across higher-beta crypto assets.

The trading volume surged during this period, reaching around 1.36 billion tokens, which is more than 180% above the average. This spike in volume suggests that the selloff was driven by active selling rather than a gradual price drift. Technically, Dogecoin is now trading below its 100-hour simple moving average, with a bearish trend line forming near $0.1340. Efforts to reclaim the $0.1300 level have been unsuccessful, reinforcing it as a significant resistance point.

Sentiment and Market Dynamics

Despite the downturn in price, Dogecoin maintains a strong online presence. The official Dogecoin ecosystem account acknowledged renewed public endorsements, including mentions from high-profile figures and cultural references reminiscent of DOGE’s remarkable performance in 2021. However, from a trading perspective, Dogecoin is significantly below its all-time high and has seen a sharp decline year-to-date. Additionally, open interest in DOGE has dropped considerably since its peaks in early 2025, indicating reduced speculative interest among traders.

Some market participants interpret this situation as capitulation, suggesting that traders are exiting positions due to the sustained price decline. Conversely, others view it as a necessary phase of market correction, where excess leverage and hype are being flushed out of the system.

Key Levels for Traders

Traders are currently focusing on the $0.1290–$0.1280 zone. Maintaining price levels above this range could allow Dogecoin to consolidate. However, a persistent break below this area may expose support levels near $0.1250 and potentially down to $0.1200. On the upside, reclaiming the $0.1300 level would be the first sign of easing downside momentum, although significant resistance remains at former support levels above $0.1340.

From Author

The ongoing situation with Dogecoin illustrates the volatility and unpredictability inherent in the cryptocurrency market. While the selloff raises questions about the future of DOGE, the coin’s cultural relevance and online presence suggest that it may still hold a place in the hearts of its community. The next few trading sessions will be crucial in determining whether Dogecoin can stabilize or if further declines are on the horizon.

Impact on the Crypto Market

• Dogecoin’s selloff reflects broader trends in higher-beta crypto assets, indicating market vulnerability.
• Increased trading volume suggests heightened activity and potential panic selling among traders.
• The decline in open interest may signal reduced speculative trading, impacting overall market liquidity.
• Key support and resistance levels will be critical in determining future price movements for DOGE.
• The ongoing discussion around DOGE’s valuation highlights the challenges of meme coins in the crypto landscape.