- Dogecoin dropped toward the $0.105 zone after leveraged long liquidations accelerated selling pressure.
- Analysts still see a possible rounded bottom structure forming on the weekly DOGE chart.
- Traders are watching whether DOGE can defend the broader $0.09-$0.10 support area to maintain bullish momentum.
Dogecoin has started feeling pressure again after a sharp wave of long liquidations pushed the memecoin back toward a major support area near $0.105. The move came after what initially looked like a healthy breakout attempt earlier in the week, but momentum faded fast once leveraged positions began unwinding across the market.
According to liquidation data shared by analyst CW using CoinAnk charts, DOGE fell from roughly the $0.116-$0.117 range on May 6 down toward $0.105 by May 8. That decline erased most of the previous rally and forced price directly into a dense liquidity pocket where many overleveraged traders were likely positioned.
The strongest concentration of liquidations appeared around the $0.105-$0.106 zone. Basically, a large number of bullish positions had stacked there expecting continued upside. Once DOGE slipped lower, forced liquidations kicked in aggressively and added even more selling pressure to an already weak market structure.
At the same time, smaller liquidity clusters now sit overhead near $0.111, $0.114, and $0.117. Those areas may become difficult resistance zones if DOGE attempts to bounce because traders trapped during the selloff could look to exit positions once price revisits those levels. That kind of behavior tends to slow recoveries down pretty quickly.
Failed Rally Leaves DOGE Near The Bottom of Its Trading Range
Earlier this month, Dogecoin had spent several sessions trading sideways between May 1 and May 4 before finally breaking upward in a sharp rally above $0.113. For a brief moment, momentum looked strong enough to potentially continue higher. But the breakout failed to hold, and sellers regained control shortly afterward.
Once DOGE lost the $0.111 level, downside pressure accelerated noticeably. Liquidation-driven selling combined with weakening momentum created a fairly ugly short-term structure, pushing DOGE back toward the lower end of its current range. Right now, traders are closely watching whether buyers can stabilize price before another larger flush lower develops.
A move back above $0.108 would help ease immediate bearish pressure and potentially calm some of the liquidation risk sitting underneath the market. But if the $0.105 support area breaks decisively, analysts believe DOGE could quickly slide into another round of forced selling. Leverage remains a huge factor in memecoin volatility, and Dogecoin is no exception honestly.
For now, short-term sentiment remains cautious. Traders are still trying to determine whether this recent decline was simply an overheated leverage reset or the beginning of a larger breakdown phase.
Weekly DOGE Chart Still Suggests Bigger Bullish Structure
Despite the recent weakness on lower timeframes, some analysts still believe Dogecoin’s broader setup remains constructive. A weekly chart shared by analyst Moe shows DOGE potentially forming another rounded bottom pattern near the $0.09-$0.11 region, which historically has been an important accumulation zone for the memecoin.
The chart compares the current setup with several previous DOGE structures where rounded bottoms eventually led to powerful upside breakouts once descending resistance lines were reclaimed. In earlier cycles, these formations often marked the transition from long accumulation phases into stronger bullish expansions.
Right now, DOGE appears to be attempting something similar. After falling sharply from its 2025 highs, price based near the $0.09 area before slowly trying to reclaim a falling resistance trendline overhead. That’s why this current support zone matters so much. Bulls are essentially trying to prove the rounded base is becoming a real recovery structure rather than just another temporary bounce.
Moe’s chart even outlines a larger potential path toward the $0.90 region eventually, though that target remains highly speculative for now. The move would require several major resistance zones to break first, and DOGE still sits far below those levels at the moment.
DOGE Bulls Need To Defend Support To Keep Recovery Alive
The most important area right now remains the broader $0.09-$0.10 support region. If Dogecoin loses that base convincingly, the rounded bottom setup weakens significantly and sellers would likely regain full control over the higher timeframe structure.
The first major recovery level sits near $0.125. DOGE needs to reclaim and hold above that zone before traders begin seriously discussing stronger weekly momentum again. Beyond that, analysts are watching resistance levels near $0.17, $0.24, and eventually around $0.33 based on previous market reaction areas.
For now though, the market still sits in a wait-and-see phase. DOGE continues trading near critical support while traders balance short-term liquidation risks against the possibility of a larger long-term recovery structure forming underneath the surface.
What happens around the $0.10 region over the coming weeks could end up defining Dogecoin’s next major trend direction.
