Dogecoin’s downward move accelerated during a wider pullback across the crypto market, with the memecoin breaking below the $0.07 support level and falling to $0.068.

The last time Dogecoin traded near those levels was in November 2023. At press time, Dogecoin [DOGE] was changing hands at around $0.069, down 4.3% on the daily chart.

Market activity also increased during the decline. Dogecoin’s trading volume rose 57% to $866 million over the same period.

The price drop coincided with a sharp rise in liquidations across leveraged DOGE positions. According to CoinGlass, $8.20 million in long positions were liquidated over 24 hours, while short liquidations totaled only $552,490. Liquidations occur when leveraged positions are forcibly closed after collateral falls below required levels, so the imbalance showed that traders positioned for upside were affected more heavily by the move.

Why are Dogecoin traders reducing exposure?

As Dogecoin fell, liquidation risk increased and leveraged traders reduced their exposure to the asset.

According to Coinalyze, Dogecoin’s Sell Perps Volume rose to 493.04 million, while Buy Perps Volume stood at 426.535 million. The difference pushed the Buy-Sell Delta down to -66.505 million.

Net Buying also remained negative at -1.385 billion. Together, these readings indicated that selling activity exceeded buying activity in Dogecoin’s perpetual market.

A similar pattern appeared in the futures market, where capital outflows outpaced inflows. Futures Outflows climbed to $520.41 million, compared with Futures Inflows of $425.94 million.

As a result, Futures Netflow fell 361.34% to -$94.46 million. The data showed that substantially more capital left Dogecoin futures than entered during the measured period.

Those conditions added to DOGE’s downward pressure and kept market attention on whether the token could regain the $0.07 level. For DOGE, which is widely traded on both spot and derivatives venues, the balance between forced selling, futures flows, and exchange supply remains important because it can show whether the move is being driven mainly by leveraged positioning or by broader spot selling.

Can DOGE limit further losses?

Dogecoin’s momentum weakened further as traders continued cutting positions. The Relative Strength Index [RSI] also reflected that pressure, falling to 31.34 and placing DOGE close to oversold territory.

That reading showed strong downside momentum, although a near-oversold RSI can sometimes draw attention from buyers seeking lower entry levels.

If current pressure continues, DOGE could remain below $0.07 and move toward $0.065. However, spot market flows offered a partial contrast to the weakness seen in derivatives.

Spot Netflow stayed negative as Dogecoin declined on the 23rd and 24th of July. At press time, it stood at -$1.87 million, meaning exchange outflows were higher than inflows.

Those withdrawals suggested less immediate DOGE supply available for selling on exchanges, providing some support despite the broader decline.

If demand holds, Dogecoin could reclaim $0.07 and target $0.075. Continued weakness in derivatives may leave $0.065 exposed.

Final Summary

Dogecoin [DOGE] fell below the $0.07 support level and reached a 2023 low of $0.068.

As liquidation risk increased, traders exited positions, adding to the token’s downward momentum.