- Dogecoin Pulls Back After Rally: Dogecoin (DOGE) dropped 5.8% to $0.2341 on May 11, mirroring Bitcoin’s correction as traders took profits amid heightened geopolitical tensions and fading risk appetite.
- Derivatives and Liquidations – Mixed Signals: Over $20 million in DOGE long positions were liquidated, with Open Interest down 7.3% but options open interest spiking 49.4%, suggesting ongoing directional bets despite falling intraday volume.
- Key Levels and RSI Crossover: The 5-day RSI crossover at 70.85 remains intact, keeping the $0.30 target alive as long as DOGE holds above $0.225 support. A break below $0.19 would invalidate the bullish setup, opening the door for deeper downside.
Dogecoin’s price slipped 5.8% on Sunday, May 11, after a three-day run of double-digit gains. The drop pulled DOGE down to $0.2341, aligning with Bitcoin’s broader market correction. Despite the setback, a key RSI crossover on May 7 suggests the bulls might still have a shot at targeting $0.30.
DOGE Price Action and Market Sentiment
The pullback comes as broader market sentiment cools following Trump’s announcement of successful trade talks with China. Bitcoin surged past $104,000, but geopolitical tensions — particularly rising military friction between India and Pakistan — have added a layer of uncertainty, pushing traders into profit-taking mode.
According to Coingecko, DOGE’s trading volume fell from $4.5 billion to $3.5 billion, indicating a rotation out of speculative assets. The DOGE/BTC ratio also dropped 5.8%, signaling that traders are shifting focus away from riskier assets like DOGE amid broader market caution.
Derivatives Data — $20M in Long Liquidations
On the derivatives side, DOGE saw $20.15 million in long liquidations over the past 24 hours, with 75% of liquidations hitting long positions. Open Interest dropped 7.3% to $2.8 billion, while options volume cratered 21.7%, despite a 49.4% spike in options open interest.
This divergence hints that while intraday volume is fading, traders are still placing directional bets. Long/short ratios on Binance and OKX sit at 2.83 and 2.82, but top trader ratios are over 5.00, suggesting concentrated conviction among larger accounts.
What’s Next for DOGE?
For now, Dogecoin’s bullish structure remains intact as long as the $0.225 support holds. The 5-day RSI crossover at 70.85 is still in play, signaling potential upside momentum despite the recent dip.
Key levels to watch include $0.25 — the recent rejection point — and $0.30, which aligns with the target suggested by the RSI crossover. A daily close above $0.25, supported by rising volume, could reignite bullish momentum and push DOGE toward the $0.30 mark.
Bearish invalidation would occur if DOGE breaks below the $0.19 support. Such a move would disrupt the current higher high/higher low structure, exposing the token to further downside risk. For now, all eyes are on Bitcoin’s ability to hold $104K, as DOGE’s trajectory remains closely tied to BTC’s broader market movements.
