Dogecoin (DOGE) experienced a significant downturn, plunging by more than 23% within the last 24 hours, descending sharply from $0.11898 to $0.09166. This decline brings DOGE closer to its lowest point of the year, echoing the broader impact of Bitcoin’s recent slide to $53,000, which triggered a widespread sell-off across the cryptocurrency market.
Dogecoin’s price chart shows a clear correlation with Bitcoin’s decline. As of the latest update, DOGE has seen a partial recovery and is currently trading at $0.09584, with a market capitalization of $14.14 billion. The daily trading volume surged by over 69%, reaching $1.69 billion.
The meme-inspired cryptocurrency has been at the center of substantial liquidations. Data from CoinGlass reveals that over $11.95 million worth of DOGE was liquidated in the past day, predominantly from long positions amounting to $10.98 million and short positions totaling $963,430. This massive sell-off caused DOGE to plummet by 23% to $0.09166, marking its lowest level in five months.
Although these figures pale in comparison to the $226 million in Bitcoin liquidations, they significantly impacted the global market cap, contributing to the sharp downturn observed.
Various factors have contributed to this wave of liquidations. The speculative nature of the memecoin ecosystem makes it highly vulnerable to market fluctuations. Despite its widespread popularity and endorsements from figures like Elon Musk, Dogecoin remains a volatile asset.
The decline in Bitcoin prices exacerbated market-wide volatility, prompting traders to liquidate their positions to mitigate losses.
Despite these challenges, supporters of Dogecoin remain optimistic about its long-term prospects, citing its strong community and utility in online transactions. According to Dogecoin price forecasts, a recovery could establish a resistance level at $0.1187, potentially paving the way for further gains towards $0.1267 and even reaching a monthly high of $0.161.
Conversely, if the downward trend persists, Dogecoin could find support around $0.8979 and potentially drop further to $0.8312, nearing a yearly low of $0.07515. The next few days will be critical in determining the trajectory of Dogecoin amidst the current market volatility.