Dogecoin faced a severe liquidation event, with traders losing over $1.2 million in just four hours. As the overall digital asset market sharply declined, this meme cryptocurrency's liquidation imbalance rate reached 2563%.

Data from CoinGlass shows that long traders suffered the largest losses. This cryptocurrency dropped from an intraday high of $0.1263 to $0.1216 in just a few hours. The increasingly tense geopolitical situation has prompted investors to transfer funds from digital assets to traditional safe-haven assets like gold.

Dogecoin's current trading price is $0.1260, having increased by 2.02% in the past 24 hours. Trading volume grew by 23.04%, reaching $1.3 billion, indicating that despite the price drop, market interest remains strong.

Technical indicators point to an oversold region

Dogecoin's Relative Strength Index (RSI) is 23.7, indicating that it is in an extremely oversold state. In typical market conditions, such readings usually indicate that a price rebound is imminent. However, ongoing market sell-offs have hindered any substantial upward movement.

Technical analyst Ali Martinez pointed out that Dogecoin has potential downside risks. His analysis indicates that Dogecoin may decline further, with the next important support level at $0.073. If it falls below this price, Dogecoin's price will decrease significantly from current levels.

This meme coin was strong at the beginning of 2026 but is currently facing pullback pressure. The overall market weakness and its own technical challenges have created a difficult environment for price recovery.

Short sellers also suffered losses, but the amounts were much smaller. Within the same four-hour period, short sellers of Dogecoin lost $45,070. This indicates that the liquidation event affected traders on both the long and short sides of the market.

Market participants reacted to the losses

Dogecoin co-founder Billy Markus recently responded to the news of the cryptocurrency market losing $150 billion, and his trademark sarcastic tone was impressive. His brief comment of "oh" reflected his consistent indifference to market fluctuations. Markus has maintained this attitude across different market cycles.

Not all market participants share his detached view. As previously reported, a Bitcoin whale recently made bold moves with Dogecoin in the turbulent market environment. This trader used 10x leverage to purchase 15.6 million Dogecoins, worth over 2.1 million dollars.