Dogecoin falls 7% as risk-off trade hits Ethereum tied tokens

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Dogecoin falls 7% as risk-off trade hits Ethereum tied tokens

The sell-off was driven by risk-off positioning and heavy derivatives speculation, with futures volume surging even as spot trading declined.

By Shaurya Malwa

Feb 3, 2026, 7:35 p.m.

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(CoinDesk Data)

What to know:

• Dogecoin dropped about 6.9 percent, sliding from roughly $0.1085 to $0.1030 as broader crypto markets weakened.
• The sell-off was driven by risk-off positioning and heavy derivatives speculation, with futures volume surging even as spot trading declined.
• Traders view $0.10 as a key support level, with a break lower potentially opening downside toward $0.08, while a sustained move back above $0.106–$0.110 would be needed to signal recovery.

DOGE slid sharply as sellers pushed price through multiple support levels, with a spike in derivatives activity signaling speculation rather than conviction buying.

News Background

• Dogecoin fell alongside broader crypto weakness, acting as a high-beta proxy as ether slid roughly 7% over the same period.
• The move wasn’t driven by DOGE-specific news, but by risk-off positioning that weighed on speculative assets.
• Macro sentiment remained mixed even as U.S. lawmakers narrowly passed a funding bill to end the government’s partial shutdown, removing one near-term uncertainty but doing little to improve appetite for risk across crypto markets.

Price Action Summary

• DOGE fell about 6.9%, sliding from $0.1085 to $0.1030
• Multiple support levels failed during the decline
• A sharp volume spike near $0.110 marked a failed breakout and reversal
• Price stabilized late in the session near $0.103–$0.104

Technical Analysis

• DOGE rejected sharply near $0.110, where a high-volume spike gave way to a fast reversal, flipping that zone into resistance. Selling accelerated once price broke below $0.106, confirming a distribution-led breakdown rather than a brief liquidity sweep.
• The final hour saw capitulation-style selling into the $0.103 area, where bids finally emerged to slow the decline. While that suggests short-term stabilization, structure remains bearish unless DOGE can reclaim lost support.
• A notable feature of the session was the disconnect between futures and spot: derivatives volume surged while spot trading declined, pointing to speculative positioning rather than fresh demand.

What traders say is next?

• Traders see $0.10 as the immediate line in the sand.
• If $0.10 holds, DOGE may consolidate as liquidation pressure fades — but bulls would need a reclaim of $0.106, and eventually $0.110, to argue the selloff has run its course.
• If $0.10 breaks, downside risk opens toward $0.08, with momentum likely to accelerate given the recent failure of multiple support levels.
• For now, DOGE remains a high-beta trade, with futures activity amplifying moves but spot demand needed to confirm any meaningful recovery.