Dogecoin USD Falls 1.79% Daily: Liquidation Pressure Weighs on Meme Coin Recovery
Dogecoin USD is experiencing renewed selling pressure on January 23, 2026, with the meme coin declining 1.79% over the past 24 hours. The drop reflects broader weakness across crypto markets, where liquidation activity has picked up significantly. Trading at $0.12426, DOGEUSD faces critical technical levels as risk appetite fades among traders. Understanding the current market dynamics and technical setup is essential for anyone tracking this volatile asset. We’ll examine what’s driving the decline and where support levels may stabilize the price.
Why Is Dogecoin USD Dropping Today?
Dogecoin USD’s decline stems from intensified liquidation pressure across meme coins and high-beta crypto assets. As Bitcoin and broader markets weaken, traders are closing leveraged positions, forcing DOGEUSD lower. The $0.12426 price level represents a critical juncture where buyers have historically stepped in. Volume remains elevated at 824 million, though below the 30-day average of 1.6 billion, suggesting cautious positioning.
Market sentiment has shifted from accumulation to distribution. The sell-the-rally environment means any bounce toward $0.126-$0.127 resistance faces immediate selling pressure. This pattern is typical when risk appetite deteriorates across the broader crypto ecosystem.
Dogecoin USD Technical Analysis
The technical picture for DOGEUSD shows mixed signals with some concerning divergences. The RSI sits at 50.24, indicating neutral momentum without clear overbought or oversold conditions. The ADX reads 35.25, confirming a strong downtrend is in place, which aligns with the recent price weakness.
Bollinger Bands reveal price is trading near the middle band at $0.13, with the lower band at $0.11 providing initial support. The MACD histogram remains flat at 0.00 with no clear signal line crossover, suggesting momentum is stalling. Stochastic indicators show %K at 65.46 and %D at 74.71, indicating overbought conditions in the short term that could precede a bounce.
Dogecoin USD Price Forecast
Our analysis projects three distinct timeframes for DOGEUSD price movement. Monthly forecasts suggest consolidation near $0.01, reflecting extreme pessimism in near-term sentiment. Quarterly targets also point to $0.01, indicating sustained pressure if liquidations continue.
Yearly forecasts become more constructive, with targets reaching $0.3059, representing a 146% gain from current levels if broader market conditions improve. This assumes stabilization of liquidation pressure and renewed interest in meme coins. Three-year projections suggest $0.4235, while five-year targets reach $0.5404. Forecasts may change due to market conditions, regulations, or unexpected events.
Market Sentiment: Trading Activity and Liquidation Pressure
Trading activity on January 23, 2026 reflects heightened liquidation dynamics across crypto markets. DOGEUSD volume of 824 million is running at only 52.7% of average, indicating reduced participation from retail traders. This suggests many positions have already been liquidated, potentially clearing the way for stabilization.
Liquidation data shows significant pressure on long positions in meme coins. The Money Flow Index at 43.01 indicates weak buying pressure, with sellers maintaining control. On-Balance Volume remains deeply negative at -38.4 billion, confirming sustained selling pressure. These metrics suggest capitulation may be near, though confirmation requires price stabilization above key support levels.
Support and Resistance Levels for DOGEUSD
Critical support for Dogecoin USD exists at the $0.11 level, marked by the Bollinger Band lower band. This zone has historically attracted buyers during previous corrections. The 50-day moving average at $0.13563 provides secondary support and represents a key technical level traders monitor.
Resistance forms at $0.126-$0.127, where the sell-the-rally environment remains entrenched. Breaking above this zone requires sustained buying pressure and reduced liquidation activity. The 200-day moving average at $0.19175 represents the longer-term resistance, showing how far DOGEUSD has fallen from its average price trajectory. Year-to-date, the coin has declined 1.93%, while the one-year loss stands at 65.74%, highlighting the extended downtrend.
What’s Next for Dogecoin USD in 2026?
The path forward for DOGEUSD depends heavily on broader crypto market stabilization. If liquidation pressure eases, the $0.126-$0.127 resistance zone could be retested within days. A sustained break above this level would signal renewed buying interest and potentially target the $0.15 upper Bollinger Band.
Conversely, failure to hold the $0.11 support could trigger another wave of selling toward $0.10. The meme coin sector remains sensitive to Bitcoin’s direction, so any major moves in BTC will likely cascade through DOGEUSD. Traders should monitor volume patterns closely, as increased volume on bounces would confirm genuine buying interest rather than short-covering rallies.
Final Thoughts
Dogecoin USD’s 1.79% daily decline reflects the broader liquidation wave hitting meme coins on January 23, 2026. Technical analysis reveals a strong downtrend with RSI at neutral levels and ADX confirming trend strength. The $0.11 support and $0.126-$0.127 resistance represent critical zones for the next price move. Market sentiment remains bearish, with low trading volume and negative on-balance volume indicating sustained selling pressure. While yearly forecasts suggest potential recovery toward $0.3059, near-term consolidation near $0.01 reflects current market pessimism. The key catalyst for DOGEUSD will be stabilization of liquidation activity and renewed interest in risk assets. Traders should watch for volume confirmation on any bounce attempts, as this will signal whether buying interest is genuine or merely short-covering. The meme coin sector remains highly correlated with Bitcoin, making broader market direction the primary driver of DOGEUSD’s next move.
FAQs
DOGEUSD is declining due to intensified liquidation pressure across meme coins and high-beta assets. As broader crypto markets weaken, traders are closing leveraged positions, forcing the price lower. The sell-the-rally environment means any bounce faces immediate selling pressure.
The primary support sits at **$0.11**, marked by the Bollinger Band lower band. Secondary support exists at the 50-day moving average of **$0.13563**. The 200-day moving average at **$0.19175** represents longer-term support for the extended downtrend.
RSI at **50.24** indicates neutral momentum, while ADX at **35.25** confirms a strong downtrend. Bollinger Bands show price near the middle band with support at **$0.11**. Stochastic indicators suggest short-term overbought conditions that could precede a bounce.
Yearly forecasts target **$0.3059**, representing a **146% gain** from current levels if market conditions improve. This assumes stabilization of liquidation pressure and renewed interest in meme coins. Forecasts may change due to market conditions or unexpected events.
Liquidation pressure forces traders to close leveraged long positions, pushing DOGEUSD lower. The Money Flow Index at **43.01** shows weak buying pressure, while on-balance volume at **-38.4 billion** confirms sustained selling. This suggests capitulation may be near if price stabilizes.
Disclaimer:
Cryptocurrency markets are highly volatile. This content is for informational purposes only. The Forecast Prediction Model is provided for informational purposes only and should not be considered financial advice. Meyka AI PTY LTD provides market data and sentiment analysis, not financial advice. Always do your own research and consider consulting a licensed financial advisor before making investment decisions.
