Why did Dogecoin fall more than Bitcoin?…$0.083 support level put to the test

▲ Dogecoin (DOGE), Bear Market/AI Generated Image ©

Dogecoin (DOGE) fell more sharply than Bitcoin due to a combination of macroeconomic instability, large-scale long position liquidations, and a break below key moving averages. Dogecoin traded at $0.0831, down 3.25% over 24 hours, showing a weaker performance than Bitcoin's 1.91% decline. This correction was largely influenced by a sell-off across risk assets due to interest rate and inflation concerns, rather than individual negative factors.

According to CoinMarketCap, a cryptocurrency market data aggregator, the overall virtual asset market fell 1.77% on September 11 (local time). The European Central Bank (ECB)'s hawkish interest rate hike signals and rising U.S. producer prices fueled concerns that high interest rates could persist for a long time, particularly dampening investor sentiment towards speculative meme coins like Dogecoin. It was analyzed that DOGE also fell as the overall market shifted to a risk-averse trend.

The decline was exacerbated by cascading liquidations. In the Dogecoin market, liquidation imbalance surged to 2,691%, and long positions worth $8.59 million were forcibly liquidated. The sequential unwinding of positions betting on a bullish trend created additional selling pressure, accelerating the short-term price drop.

Technical trends also leaned bearish. DOGE's short-term trend turned bearish after falling below $0.088, near the 200-day Exponential Moving Average (EMA), which had served as a key support. The market is now presenting $0.083 as the immediate key support level, and analysis suggests that if trading volume decreases and the price holds in this range, it could be interpreted as a sign of selling pressure exhaustion.

Conversely, if $0.083 breaks, there is a possibility of a rapid decline to the next demand zone around $0.080. For a rebound, DOGE must first hold $0.083 and then reclaim $0.088, where the 200-day EMA is located. If the U.S. Consumer Price Index (CPI) comes in lower than expected, it could trigger a relief rally, but if inflation exceeds expectations, additional selling pressure could intensify.

The short-term outlook remains dominated by bearish pressure. Key variables are the U.S. CPI, to be announced on September 11, and whether the $0.083 support holds. If DOGE defends this price level, a technical rebound is possible, but if the support level breaks and selling pressure expands, it is difficult to rule out a further decline to $0.080, according to analysis.

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