Dogecoin’s price has been consolidating near the $0.12 support level, but the lack of upside volume is increasing the risk of a capitulation event. The cryptocurrency’s market structure remains bearish, with lower highs and lower lows, suggesting that downward pressure is still prevalent. According to technical analysis, the bullish volume near $0.12 is declining, which could lead to a breakdown and a rapid move towards the channel’s lower support level.
The current price action of Dogecoin is showing signs of vulnerability, with the market continuing to trade in a broader bearish structure. From a macroeconomic perspective, the sequence of lower highs and lower lows indicates that downward pressure is still dominant. While the price has stabilized near the upper support level of $0.12, the lack of bullish participation raises concerns that this level may not be sustained.
Key Technical Points of Dogecoin Price
The bearish market structure remains intact, with lower highs and lower lows dominating the price action. The upper time frame support at $0.12 is under pressure, with bullish volume continuing to decline. The remaining liquidity is below support, and a breakdown could accelerate the downward momentum.
DOGEUSDT (4H) chart, source: TradingView
Dogecoin’s recent attempts to move higher have repeatedly failed due to the high resistance of the channel, which was respected with precision. This resistance coincides with the low retest of the value range and creates a technically strong rejection zone. Any rejection from this region has resulted in renewed selling pressure and pushed the price back into the lower part of the range.
The $0.12 Support is Coming into Focus
The current decline has brought Dogecoin back to $0.12, a level that has attracted buyers in the past. However, the context is different this time, with bullish volume steadily declining as the price consolidates in this zone. This divergence between price stability and falling volume often precedes a collapse rather than a rebound.
In previous cycles, retests of the channel low resulted in strong bullish engulfing candles, indicating aggressive demand. However, these signals are currently missing, and the price is hovering around the middle of the channel, suggesting indecision rather than accumulation.
Building Liquidity Increases the Risk of Capitulation
Prolonged consolidation near support often results in a buildup of liquidity, especially when the price fails to produce a significant upswing. Stop-loss orders and residual liquidity tend to accumulate just below well-watched levels, such as $0.12. Breaking this support could trigger a rapid cascade of selling as stops are hit, leading to a capitulation event.
This type of move is commonly referred to as capitulation, where the price drops sharply over a short period of time. In the case of Dogecoin, a decisive break below $0.12 could open the door for a quick move towards the channel’s lower support, where deeper liquidity pools are likely to be found.
What to Expect from the Upcoming Price Development
Dogecoin is approaching a critical decision point, with the risk of a capitulation-like move remaining elevated as long as the price continues to fluctuate around $0.12 and upside volume declines. A confirmed break below this level would likely tap into remaining liquidity and accelerate the price towards channel low support.
Conversely, a sudden influx of bullish volume and a strong rebound to higher levels would be required to invalidate this bearish scenario. In the short term, the behavior around $0.12 will determine whether Dogecoin stabilizes or enters a deeper correction phase. For more information, visit https://crypto.news/dogecoin-price-capitulation-bullish-volume-fades-0-12/
