Dogecoin (DOGE) faced renewed selling pressure in recent days after its price tumbled from $0.117 to $0.105, erasing most of its earlier gains. This sharp drop was accelerated by a wave of liquidations targeting leveraged long positions, particularly within the $0.105–$0.106 range, where concentrated sell-offs disrupted upward momentum.
Liquidation pressure intensifies
According to crypto analytics platforms, a significant portion of leveraged long positions in Dogecoin were forcibly closed as its price declined. This led to heavy liquidation activity specifically between $0.105 and $0.106, further amplifying the downward trend as many investors were forced out of their trades.
As DOGE’s price slipped, it also established resistance zones at $0.111, $0.114, and $0.117. Should the price attempt a recovery, these levels may act as points where sellers become active again, possibly halting a rebound.
After a brief period of sideways movement, an attempt at a swift rally above $0.113 lost steam. Selling pressure increased from May 6 onward, gathering pace especially once the $0.111 support was breached, deepening the correction.
Rounded bottom emerges on weekly chart
In the weekly view, Dogecoin’s latest chart pattern highlights the formation of a broad base between $0.09 and $0.11. Crypto analyst Moe showcased this development on X, pointing to past instances where similar rounded bottoms were precursors to major upward moves for DOGE.
The current setup sees DOGE forming a base around $0.09 following its 2025 peak retracement. The coin is now attempting an upward breakout, testing the trendline from below. Price action here will be crucial in confirming whether the pattern holds strength.
“The chart indicates this zone is key for DOGE, as the price is trying to demonstrate whether it has completed a bottom formation. If confirmed, it could trigger a strong move upward; but for the pattern to succeed, DOGE must first maintain levels above $0.125.”
Analysts suggest that reclaiming the $0.125 mark could provide bullish momentum on the weekly chart. Should DOGE close above this threshold, potential targets include $0.17, $0.24, and $0.33. Conversely, if support between $0.09 and $0.10 fails, the foundation underpinning its recent rally would weaken and sellers could regain control.
Dogecoin, known for its decentralized nature and active community backing, often finds itself at the center of market speculation—especially on social media. In this latest downturn, widespread liquidations of high-risk leveraged trades played a central role in triggering swift price declines.
The unfolding price action around the $0.105 support zone continues to attract trader attention, as the balance between buyers and sellers dictates DOGE’s short-term direction.
Market observers remain focused on upcoming resistance and support levels, watching for signs of a potential reversal or deeper correction as DOGE consolidates near critical price bands.
As of now, volatility remains high as market participants reassess their risk appetite, with particular caution towards opening large leveraged positions until stability returns to DOGE markets.
The evolving technical formations and sharp liquidations underscore the sensitivity of DOGE to leveraged positioning, which can rapidly shift the mood from bullish to bearish in volatile crypto environments.
