Dogecoin Loses Over 25% Value as $29 Million Liquidated
The market for Dogecoin (DOGE) is contracting, having lost over 25% of its value in three days. This decline coincides with a broader downturn influenced by Bitcoin's crash, raising concerns among investors and speculators.
Market Overview: A Sudden Change
The recent drop in crypto assets has resulted in approximately $787 million lost through liquidations. Dogecoin, often viewed as a memecoin, has been significantly affected, with around $29 million in DOGE liquidations reported. Bullish positions experienced the most losses, as per CoinGlass data. In a single day, Dogecoin's price fell to a low of $0.34 before stabilizing at about $0.365, marking a 6.05% decline.
Macroeconomic factors, particularly the Federal Reserve's stance on interest rates, have contributed to a bearish sentiment in the market. Following Bitcoin's drop to the $94k level, Ethereum and Dogecoin also saw declines.
A Closer Examination Of Liquidation Issues
In the last 24 hours, approximately $24 million in bullish DOGE positions were liquidated, while short positions incurred losses of $5.93 million. This volatility highlights the current instability in the market.
Analysts note that Dogecoin is nearing critical support levels, with some suggesting it could fall below $0.20 if negative momentum continues. Key support levels are under close observation, and the Relative Strength Index (RSI) indicates that Dogecoin may be oversold, potentially signaling a rebound if traders defend critical price zones.
The Road Ahead For Dogecoin
Despite current challenges, expectations for Dogecoin remain optimistic. Analysts suggest that maintaining a weekly close above $0.26 could facilitate a recovery rally toward higher targets. However, ongoing market pressures and unpredictability temper these hopes.
Traders are left questioning how low Dogecoin might fall before establishing solid ground. Anticipated significant price fluctuations in the coming days and weeks will draw attention to this prominent meme coin as it seeks to recover amid a challenging crypto environment.
Featured image from DALL-E, chart from TradingView