Dogecoin Market Decline: $12.6M Liquidations! Will DOGE Drop Below $0.1980 or Rebound to $0.2586?

The cryptocurrency market has dropped dramatically, with Bitcoin (BTC) falling to $87.7K and Ethereum (ETH) standing firm at $2.1K. Amidst this decline, the drop in the Dogecoin market has turned worse, with DOGE declining by over 8% within the last 24 hours, its value standing at $0.1981 as of today, 7th March, at noon. This steep decline has seen $12.60 million of DOGE liquidated, with the trend of growing volatility in the meme coin market.

Bearish Sentiment Takes Over DOGE Market

DOGE opened the day on a high of $0.2192 but was soon dropped by strong bearish pressure, driving its price to a low of $0.1915. Despite losing ground daily, Dogecoin has been able to record a weekly gain of 6.29%, moving to a high of $0.2412 before it began to reverse. The Dogecoin market cap is now at $29.44 billion, with its 24-hour volume increasing by 41.21% to $1.98 billion. The impact of market liquidation has also contributed to the existing market uncertainty.

Graph 1 – Provided by Sarayucyzie, published on TradingView, March 7, 2025

The Moving Average Convergence Divergence (MACD) indicator shows a bearish crossover where the MACD and signal lines are both situated below the zero line. This indicates strong bearish momentum, supporting the possibility of sustained bearish pressure. The Chaikin Money Flow (CMF) indicator of -0.06 also indicates mild selling pressure, with greater capital outflows than inflows in the market. Dogecoin technical indicators further highlight the uncertain nature of the asset.

Technical Indicators Indicate Weakness

DOGE’s Bull Bear Power (BBP) indicator is at -0.0093, which confirms bearish dominance. The Relative Strength Index (RSI) has also settled at 44.25, which means that the asset is tipping towards bearish but not yet oversold. These indicators show a weak side of DOGE in the short term since investors are cautious about its price movement.

Although the Dogecoin market declined, trading volumes have surged noticeably, indicating added activity from market participants seeking to profit from fluctuations in price. A strong shift in either direction has the potential to establish a tone for DOGE’s future market cycle.

Future Expectations: Is DOGE Revival Possible?

As the Dogecoin market declines and fails to stay stable, investors are looking towards major support and resistance levels. The $0.20 mark is still the key, with a sustained fall below this price potentially driving more losses. Should DOGE find its footing and regain momentum, breaking above $0.2586 would be the next significant target for the meme currency. For a strong, bullish turnaround, DOGE will need to pass through various levels of resistance.

Conclusion: A Crucial Stage for Dogecoin

Dogecoin’s recent price decline and rising market liquidation impacts are the spotlight on the volatility in the crypto market. As bearish signals are overcome, there is still a chance for recovery in case DOGE maintains major support levels and returns to bullish momentum. Traders need to be cautious and observe technical indicators before making substantial investment decisions.

The coming weeks will be crucial for the Dogecoin market decline as investors seek clarity on whether DOGE can break free from the bearish cycle. Dogecoin technical indicators and meme coin volatility will serve as key elements in predicting the meme coin’s next move. As the market evolves, traders must stay informed to navigate this uncertain phase effectively.