Key Takeaways
DOGE is leaning into the $0.20 demand zone after a 17% drop. Smart money scooped up 310 million coins as Open Interest dropped 18%, signaling a leverage reset rather than spot-led panic.
The memecoin sector faced a sharp technical unwind this week. In the last 24 hours alone, nearly $10 billion in capital exited the space, slashing total market cap by 10.81% to $75.5 billion.
Dogecoin [DOGE] wasn’t immune to the drawdown. Price rolled over from its $0.28 local top to $0.23, putting holders at an unrealized loss of around 17%.
Here’s why it matters: DOGE’s SOPR dropped from 1.16 to 1.08 in under five days. Historically, a break below 1 marks full-blown capitulation, as holders move from passive drawdown to active exit.
Source: Glassnode
That said, as long as SOPR holds the line, DOGE still has a shot at defending the $0.20 support. In that case, this pullback looks more like a market-wide reset than a full-on conviction flush.
Supporting this, the breakdown below $0.24 swept through three consecutive liquidity pockets, triggering roughly $8 million in liquidations. Yet despite the cascade, DOGE printed a near 4% intraday reversal.
Structurally, this reinforces DOGE’s underlying support. If the bid continues to hold, price could be gearing up for a clean resistance-flip setup, potentially fueling the next leg toward the $0.30 target zone.
DOGE tests buyer commitment
DOGE is closing in on a key inflection point.
The memecoin has dropped over 17% in just two days, now leaning hard on the $0.20 demand zone. But as AMBCrypto pointed out, there’s no real sign of capitulation yet.
What has shifted is the derivatives side. Open Interest’s been nuked by nearly 18%, marking the biggest flush among the large caps. In turn, hinting at a heavy leverage reset rather than spot-driven panic.
Source: Coinglass
Backing that up, smart money wallets have scooped up over 310 million DOGE in the last 48 hours.
With bid-side flows still soaking up the unwind and SOPR holding above 1 (no capitulation just yet), DOGE looks like it’s working through a controlled leverage reset.
In turn, laying the groundwork for DOGE to break $0.28 ceiling in the next bullish leg.
