Dogecoin Faces Pressure as Price Dips Below $0.09 Amid Selling Wave

Dogecoin (DOGE) has experienced a significant downturn, slipping by 10.48% to reach a recent low of $0.088. The popular cryptocurrency is grappling with heightened selling pressure, reflected in its continued bearish trend over the past several trading sessions. Following a failure to breach its resistance level at $0.106, Dogecoin has fallen below its short-term exponential moving average (EMA) of $0.098, indicating a strengthening bearish momentum. Currently, DOGE is priced at $0.089.

Decline in Activity and Adoption

A notable decline in Dogecoin’s on-chain transactions has significantly contributed to its bearish trajectory. Data from Santiment reveals that the daily active addresses (DAA) for Dogecoin plummeted by 78.34% year-over-year, dropping from 87,700 to 28,000 in February 2026. This dramatic decrease suggests that many investors are exiting the market, further exacerbating Dogecoin’s downward spiral. The divergence in price and DAA has also reached a two-month low of -46%, illustrating a troubling trend in adoption that is critical for any upward price movement.

Increasing Selling Pressure and Market Dynamics

The broader market sell-off has intensified the selling pressure on Dogecoin, with futures market data indicating a surge in outflows. Recent statistics show that Dogecoin faced $736 million in outflows against $659 million in inflows, resulting in a 418% increase in overall futures netflow, which now stands at -77.39 million. This trend highlights a growing sentiment of fear among investors, prompting many to liquidate their holdings.

Additionally, the liquidation rate has surged, with approximately $6.5 million in long positions liquidated, including $3.3 million in just a few hours. Spot market activity has also reflected this trend, with sell volume reaching 976.75 million compared to 928 million in buy volume, resulting in a negative buy delta of -48 million.

Looking ahead, Dogecoin faces significant challenges amid the ongoing market volatility and weakening fundamentals. The negative Directional Movement Index (DMI) has increased to 54, while the positive DMI has decreased to 28. If the current market conditions persist, Dogecoin could potentially drop to the critical support level of $0.080. Conversely, any reversal in market sentiment would necessitate Dogecoin breaking through its short-term moving averages, such as the 20- and 50-EMAs, to target the $0.10 mark.

As the situation develops, investors will be closely monitoring these trends to gauge the future trajectory of Dogecoin amidst the shifting market landscape.