Dogecoin (DOGE) traded lower Thursday as a broader crypto market selloff weighed on digital assets. Bitcoin fell below $84,000, hitting $81,254 before partially recovering.
The downturn triggered a wave of long-position liquidations across the market. According to CoinGlass, traders liquidated about $688.8 million in crypto positions over the past 24 hours.
Nevertheless, Dogecoin is approaching a key technical decision point, with one analyst warning that the meme coin could be preparing for a sell-side liquidity (SSL) sweep before making its next major move.
Crypto analyst Trader Tardigrade believes Dogecoin is repeating a structure seen during a previous uptrend. According to the analyst, DOGE has formed a series of lower highs while repeatedly finding support around a former swing-high area.
“Always prepare for the SSL Sweep during an uptrend,” Trader Tardigrade stated in a Tuesday tweet.
 
The analyst identified the recent low as the key sell-side liquidity (SSL) target. A sweep would involve DOGE moving below that level to collect liquidity before potentially reversing higher.
He also said traders should closely monitor price action after it moves below the SSL. A rejection could set the stage for another new high, while sustained acceptance beneath the level could signal that DOGE is transitioning from an uptrend into sideways trading.
Notably, the setup comes as DOGE remains compressed inside a descending triangle, according to analyst Ali Martinez. The pattern has tightened as price moves toward its apex, raising the possibility of a bullish breakout.
Martinez has flagged $0.095 as a key confirmation level. He previously said a four-hour close above that threshold could validate a bullish breakout and open the door toward $0.106.
DOGE has nevertheless struggled beneath nearby resistance. The cryptocurrency recently traded around $0.098, where about 28 billion DOGE previously changed hands.
That resistance could determine whether the anticipated breakout gains traction.
Despite the technical pressure, large holders have been accumulating Dogecoin. Last week, data showed whales bought more than 1.14 billion DOGE over a 96-hour period, worth about $112 million at the time.
The buying emerged around the $0.098 resistance zone, suggesting that some large market participants may be positioning ahead of a potential breakout.
However, Martinez warned that clearing $0.098 would not immediately remove all overhead barriers. The next significant supply zone is around $0.11, where approximately 4.98 billion DOGE previously changed hands.
At press time, DOGE price was trading at $0.083, down 6.11% in the past 24 hours.
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