Dogecoin Falls to 2023 Levels: Millions of Dollars in DOGE Liquidations

According to CoinDesk's market analysis published on November 13, open interest in Dogecoin futures declined by 7.3% within 24 hours. During the same period, DOGE's price fell by 3.4%, suggesting that investors were not only experiencing losses but were also significantly reducing their market exposure. The sharp contraction in open interest indicates weakening speculative demand in the short term.

On-chain data also suggests that selling pressure has not been limited to leveraged trading. An analysis published on November 11, citing Santiment data, reported that the combined holdings of addresses containing between 100,000 and 100 million DOGE had decreased by approximately 750 million DOGE since November 3. However, a decline in wallet balances does not necessarily mean that all those assets were sold on cryptocurrency exchanges.

DogeOS Development Has Yet to Reverse Dogecoin's Decline

Despite the negative price performance, an important technical development has emerged within the Dogecoin ecosystem. Jordan Jefferson, founder and CEO of DogeOS, announced in comments to The Block on November 11 that the first version of the project, which aims to introduce smart contract and decentralized finance (DeFi) capabilities to the Dogecoin network, had been completed. Jefferson also confirmed that security audits had been finalized, adding that the mainnet launch was approaching.

Developed as an EthereumVirtual Machine (EVM)-compatible application layer, DogeOS aims to introduce new use cases without modifying Dogecoin's existing blockchain infrastructure. The project is designed to enable developers to build decentralized exchanges, lending protocols, games, and various financial applications. According to Jefferson, more than 100 developers are actively working on projects within the ecosystem. However, an exact date for the mainnet launch has not yet been announced.

The launch of DogeOS could allow Dogecoin to expand beyond its traditional role as a cryptocurrency primarily used for transfers and payments. Nevertheless, the economic activity the project may generate in the future and the current demand for DOGE are two separate factors. The fact that the announced technical progress has not supported the price in the short term suggests that investors are placing greater emphasis on prevailing market conditions.

Critical Support and Resistance Levels to Watch for Dogecoin

In Dogecoin's technical outlook, the $0.062 region remains a closely watched short-term level. If the price establishes a sustained position below this area, $0.0611 and subsequently $0.0605 could emerge as the next potential support levels. In particular, a breakdown below $0.060 could increase the risk of selling pressure extending into lower price regions.

On the upside, the first significant resistance level stands near $0.0647. If DOGE manages to reclaim this level, the $0.0665 region could come into focus. However, a short-term recovery would not necessarily indicate that the broader downward trend has ended. A more convincing rebound would require the price to break through resistance levels alongside a noticeable increase in buying demand.

In the coming days, Bitcoin's price movements, changes in open interest across the futures market, and new announcements regarding the DogeOS mainnet launch could play a decisive role in Dogecoin's performance. In particular, price action around the $0.060 level will provide important clues about whether the current decline is likely to deepen.