Dogecoin (DOGE) has faced a severe correction, tumbling to its lowest valuation in three months following a sharp sector-wide sell-off. As of February 10, the leading meme coin is trading near the $0.093 mark, having recently dipped as low as $0.08 during intraday trading. This 20% decline from recent highs highlights the fragility of the current market structure, as retail traders step back amidst weakening Bitcoin correlation.

The sudden drop has wiped out weeks of accumulation, leaving investors questioning the short-term viability of the meme coin sector. With liquidity evaporating and volatility spiking, market participants are closely monitoring whether DOGE can defend critical psychological support levels or if further capitulation is imminent.

What Do Technical Indicators Signal for DOGE?

The technical landscape for Dogecoin is currently precarious, though some patterns suggest a potential reversal. According to crypto analyst Kamran Asghar, DOGE is trading within a falling wedge pattern on the daily chart—a formation often associated with bullish breakouts if momentum can shift. This setup predicts that meme coin beta might start outperforming majors altcoins.

$DOGE just nailed the weekly falling wedge breakout with a clean higher low bounce off the lower rail! pic.twitter.com/p7rf1D1j2S

— ?????? ?????? (@Karman_1s) February 7, 2026

The Relative Strength Index (RSI) is hovering near 30, indicating that the selling pressure may be overextended. Analysts at Economies.com note that while there are signs of an intraday recovery, the dominant trend remains bearish as long as the price stays below $0.1014. A failure to reclaim this level keeps the $0.0790 support in play.

Source: TradingView

Critical levels to watch include $0.09370, a pivot point essential for maintaining the broader bullish structure. A Dogecoin price forecast regarding the $0.10 support suggests that losing the $0.088 zone could trigger a deeper cascade toward $0.060, invalidating the recovery thesis.

On-Chain Metrics Confirm Weakening Momentum

Under the hood, on-chain data paints a concerning picture of market liquidity. Market depth for DOGE has contracted significantly, dropping from $12 million in January to just $10 million in early February. This reduction in liquidity makes the asset more susceptible to volatility and slippage during large sell orders, exacerbating downward price moves.

However, not all data is bearish. Dogecoin whales purchased around 200 million DOGE recently. As large purchase is a signal of positive confidence of DOGE,  this aligns with recent reports on a Dogecoin whale accumulation trend shift, where smart money appears to be absorbing retail panic selling.

Dogecoin whales made another transactions of 200 million $Doge recently.

Equivalent to $20m. pic.twitter.com/NaeWg1xG9W

— dogegod (@_dogegod_) February 9, 2026

Usage metrics also indicate a pause in network growth. Transaction volume has declined, suggesting that retail interest is temporarily waning. This lack of engagement explains why investors are leaving stagnant assets like Dogecoin to rotate capital into higher-volatility speculation, further dampening DOGE’s immediate momentum.

Market Analysts Weigh In

Sentiment among market analysts is divided between caution and opportunistic bullishness. While the “meme coins are dead” narrative is circulating, veteran traders view the falling wedge as a classic capitulation setup before a bounce. The consensus suggests that while the macro downtrend is active, the risk-to-reward ratio for a relief rally is improving.

Investors assessing the broader sector are also looking at comparative performance, analyzing the best meme coins to buy for maximum ROI in 2026 to determine if Dogecoin’s sluggishness is an isolated incident or a sector-wide signal.

What Could Invalidate the Bearish Setup?

For the bulls to regain control, Dogecoin must decisively reclaim the $0.1014 resistance level on high volume. A daily close above this mark would neutralize the immediate bearish pressure and validate the falling wedge breakout, potentially targeting $0.12 or higher.

Conversely, the bearish thesis remains valid if the price fails to hold the $0.088 swing low. A breakdown here would likely accelerate selling toward the $0.060 region. Broader market factors, particularly Bitcoin’s stability and a resurgence in meme coin trading volumes, will be pivotal in determining the next directional move.

Maxi Doge ($MAXI): An Alternative for Meme Coin Traders

As Dogecoin struggles with key resistance levels, some high-risk traders are diversifying into presale opportunities like Maxi Doge ($MAXI). Designed to capture the speculative energy of the meme sector, Maxi Doge offers a fresh entry point for those seeking potential early-stage gains that established caps like DOGE can no longer easily provide.

With the current presale raising significant capital, $MAXI positions itself as a contender for traders looking to hedge against large-cap stagnation. The project emphasizes community-driven utility and reduced supply metrics compared to its inflationary predecessors.

To buy $MAXI at its presale price, head to the official Maxi Doge official website, and link your wallet (e.g. Best Wallet).

You can either swap USDT or ETH for this token or use a bank card to invest.