Dogecoin Falls to $0.21 on $8M Liquidations, $0.208 Support
Dogecoin traded lower in early September, sliding to around $0.21 after $8.11 million in Dogecoin liquidations contributed to a broader $371 million market-wide sell-off. Most Dogecoin liquidations—about $6.98 M—were long positions, amplifying near-term downside risk. Technical analysis highlights key support at $0.208, which has held five times, while resistance near $0.225 aligns with the 50-day simple moving average. Traders are also eyeing the Federal Reserve’s September 16–17 policy meeting, as any change in interest rate guidance could shift risk appetite and liquidity across crypto markets. A breach of $0.208 support may trigger further declines, whereas a reclaim above $0.225 would signal stabilization. Given heightened volatility, position sizing and stop-loss strategies are advised.
Bearish
This news is bearish for Dogecoin. The $8.11 M in liquidations—predominantly long positions—reflects forced selling that heightens short-term downside risk. Historically, similar liquidation events (e.g., the June 2025 altcoin sell-off) preceded further 8–12% declines. Although the $0.208 support has held multiple times, the proximity of the Federal Reserve’s September 16–17 meeting adds macro uncertainty; dovish or hawkish guidance could sway liquidity and risk appetite. A breach of $0.208 may accelerate outflows, while a rebound above $0.225 is needed for stabilization. In the long term, easing rate expectations could restore bullish momentum, but traders should approach the next week with caution, prioritizing strict risk management to navigate potential volatility.