Dogecoin Price Drops 10%, Approaches Critical $0.30 Support Level
The crypto market has experienced a liquidation surge of $656 million in 24 hours, with bearish trends affecting major coins. Notably, the newly launched TRUMP token saw $50 million in liquidations, while established meme coins like Dogecoin and Shiba Inu faced significant declines.
- Dogecoin's market cap is at $50 billion, down nearly 10% in 24 hours
- Shiba Inu dropped by 8.06%
- TRUMP token lost about 40% of its value
- The meme coin segment's market cap decreased to $101.46 billion
Dogecoin Price Action
Dogecoin is trading at $0.34128, testing crucial support around $0.30. A breakdown below this level could lead to further decline. The daily RSI indicates minor bullish support, but momentum indicators suggest potential negative trends.
- Support levels: $0.30, $0.26, $0.19
- Potential upside targets: $0.40 and $0.50
Market Sentiment
Bearish sentiment is rising, with open interest in Dogecoin down by 9% to $4.66 billion. Long liquidations reached $18.67 million, and the long-to-short ratio fell to 0.9305.
Network Activity
Despite price declines, Dogecoin's network is seeing increased activity, with 588 transactions over $1 million recorded recently.
Historical Performance
Historically, Dogecoin averages an 84% return in January. Current monthly returns stand at 8.22%, although broader market conditions may influence future performance negatively.
Conclusion
Dogecoin's price is at a critical point, with support near $0.30 playing a pivotal role in determining its short-term trajectory. Increased network activity and historical trends may support recovery if the overall market sentiment improves.