Why is Dogecoin price down today?
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Why is Dogecoin price down today?

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DOGE price is down 8% on March 11, and rejection from a major resistance zone points to a deeper correction in the short term.

Why is Dogecoin price down today?

COINTELEGRAPH IN YOUR SOCIAL FEED

Dogecoin (DOGE) is underperforming its top-ranking rivals, having fallen over 8% in the last 24 hours to trade at $0.158.

What to know:

DOGE/USD daily price chart. Source: Cointelegraph/TradingView

DOGE leads memecoin slump

Dogecoin’s declines today are part of a broader bearish sentiment in the memecoin sector.

Key takeaways:

  • Shiba Inu (SHIB), the second largest memecoin by market capitalization, was down 7% over the last 24 hours to trade at $0.00001167. 

  • Ethereum-based Pepe (PEPE) has dropped by approximately 8%.

  • Solana-based SPX6900 (SPX) posted the most losses among the top-cap memecoins, dropping by 28%.

Top memecoins’ performance. Source: CoinMarketCap

Memecoin market cap. Source: CoinMarketCap

  • The risk-off behavior from investors comes amid increasing negative sentiment fueled by macroeconomic uncertainties tied to President Trump’s tariffs.

  • This has spooked investors, pushing them away from volatile assets like memecoins.

Over $23 million in long DOGE positions liquidated

Dogecoin’s bearishness on March 11 is accompanied by significant liquidations in the derivatives market, signaling strong bearish pressure.

Key points:

  • Over $23.1 million worth of long DOGE positions have been liquidated over the last 24 hours alone, compared to $4.4 million in short liquidations.

  • Bullish traders are forced to sell their positions when long positions are liquidated.

Total DOGE liquidations. Source: CoinGlass

Related: Memecoins are likely dead for now, but they’ll be back: CoinGecko

  • DOGE’s open interest (OI) has also dropped 37% in the past seven days, signaling a decline in trader participation.

DOGE futures open interest. Source: CoinGlass

  • The low OI and long liquidations suggest that leveraged traders are exiting their positions, triggering forced selling.

  • The funding rate has flipped negative, and its value at -0.0077% suggests a bearish outlook where short sellers are in control.

DOGE OI-weighted funding rate. Source: CoinGlass

Moving averages are not in Dogecoin’s favor

The ongoing drawdown comes after DOGE ran into a major resistance zone.

Notably:

  • A key barrier sits between $0.24 and $0.26, within which the 200-day simple moving average (SMA) at $0.247 and the 50-day SMA at $0.257 are currently. 

  • Since Feb. 3, DOGE bulls have attempted to rise above this level three times, but on each occasion, the altcoin produced a lower high than the previous one. 

  • This means that traders sell every time the price tries to cross this zone.

  • An additional barrier sits higher up at $0.3129, which is also the 100-day SMA.

DOGE/USD daily chart. Source: Cointelegraph/TradingView

  • On the downside, a key area of interest lies between the psychological level at $0.150 and the range low at $0.127, reached on Oct. 26, 2024.

  • This is an important level that bulls need to defend in order to avoid further losses to $0.10.

  • Note that when the DOGE bounced off this level in November 2024, it initiated a 227% rally to $0.480. 

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.