Dogecoin (DOGE) had a rough Wednesday, extending its losing streak as the broader cryptocurrency market took a beating. The world's largest memecoin by market cap dropped over 4% in 24 hours, actually performing worse than Bitcoin (BTC) and XRP (XRP) during the same period.

Massive Liquidation of Bullish Bets

The selling pressure was real. Dogecoin's trading volume jumped 47% to $1.42 billion, which tells you plenty about how eager people were to exit their positions. Things got particularly ugly for the leveraged crowd: over $5.60 million in long positions got wiped out as the price dropped.

The speculative fervor that often surrounds memecoins appeared to cool off noticeably. Open interest in DOGE futures fell 4.34% over the same 24-hour stretch, according to data from Coinglass. When open interest drops alongside price, it typically means traders are closing positions rather than opening new ones.

A Critical Historical Support Level

Ali Martinez, a well-known cryptocurrency technical analyst and trader, pointed to something interesting about where Dogecoin might find its footing. According to Martinez, the $0.074 level represents key historical support.

"$0.074 is the key support for Dogecoin. Over 28 billion tokens last changed hands there," Martinez explained.

That's not just a random price point. When massive volume trades at a specific level, it often creates a psychological and technical anchor in the market. If DOGE were to revisit that support level, though, it would mean a painful 41% drop from current prices. The memecoin last traded around $0.074 back in February 2024.

What the Technical Indicators Are Saying

The technical picture isn't exactly encouraging right now. The Moving Average Convergence Divergence indicator, which compares two exponential moving averages (typically the 12-period and 26-period), issued a sell signal for DOGE, according to TradingView data.

The Bull Bear Power indicator, which gauges the relative strength of buyers versus sellers, showed a neutral reading. Meanwhile, the Relative Strength Index hovered just above oversold territory, suggesting the selling might be approaching exhaustion without quite getting there yet.

Price Action: At the time of writing, DOGE was trading at $0.1261, down 4.35% over the previous 24 hours.