TLDR
DOGE dropped 12.4% in 24 hours following Fed Chair Powell’s hawkish comments, falling to $0.31 from a 2024 high of $0.47
Trading volume surged 67% to $10.25 billion as holders repositioned their investments
Major outflows observed on Binance ($83 million) with trading volume spiking 74% to $1.85 billion
Other meme coins followed the decline, with Shiba Inu down 23.3% and BONK falling 22.5%
Despite the correction, DOGE maintains its position as the seventh-largest crypto with $46.6 billion market cap
Dogecoin (DOGE) experienced a sharp decline in the past 24 hours, dropping 12.4% to $0.31 as markets processed the Federal Reserve’s latest economic outlook. The popular meme coin’s descent coincides with broader market turbulence following Fed Chair Jerome Powell’s comments about inflation projections.
Trading volume for DOGE surged 67% to $10.25 billion as investors rushed to adjust their positions. The current price represents a 35% decrease from its 2024 high of $0.47, marking one of the largest corrections for the asset this year.
Binance, the largest cryptocurrency exchange by volume, reported substantial outflows exceeding $83 million. The platform’s DOGE trading volume increased by 74% to $1.85 billion, according to data from CoinGlass. The numbers suggest a coordinated move by holders to reduce their exposure.
The price action follows Powell’s remarks that recent inflation data had “fallen apart,” triggering concerns about the central bank’s monetary policy path. The Fed’s indication of maintaining higher interest rates for an extended period has particularly impacted speculative assets.
Market data reveals concentrated selling pressure across major exchanges, with negative net flows dominating the trading activity. Only Bybit and Bitstamp showed positive inflows, indicating a broader market exodus rather than exchange-specific events.
Exchange-wide patterns show persistent selling from late November through December. The DOGE/USDT trading pair on major platforms like Binance and OKX has declined approximately 23% over the past week.
The cryptocurrency’s current market capitalization stands at $46.6 billion, allowing it to maintain its position as the seventh-largest cryptocurrency by market value. This metric highlights DOGE’s continued importance in the broader crypto ecosystem despite the recent price action.
Other meme coins have followed DOGE’s downward trajectory. Shiba Inu (SHIB) dropped 23.3% during the same period, while BONK experienced a 22.5% decline. The parallel movements suggest market-wide pressure on the meme coin sector.
Recent Solana-based meme coins have also faced challenges. MOODENG and CHILLGUY saw their values drop by 38% and 43% respectively. Peanut the Squirrel (PNUT) declined 46%, though it maintains a market cap above $672 million.
The exception to the downward trend has been Fartcoin, which gained 71% over the past week and shows a 323% increase for the month. The token’s performance stands out against the broader market decline, attracting mainstream media attention including coverage on CBS’ The Late Show with Stephen Colbert.
Trading data from major exchanges indicates heightened volatility in DOGE markets. The 24-hour trading range has widened considerably, with prices testing several support levels before finding temporary stability.
Technical indicators show increased selling pressure across multiple timeframes. The hourly charts display a series of lower highs and lower lows, suggesting bears currently control market momentum.
Bitcoin’s simultaneous retreat below $100,000 has amplified pressure on alternative cryptocurrencies. However, data shows meme coins have experienced steeper percentage drops compared to mainstream digital assets.
Historical price data puts the current situation in perspective. While DOGE trades 57% below its all-time high of $0.73 reached during the 2021 bull market, current prices still represent a massive increase from its initial valuation.
The latest market data from CoinGlass shows liquidation cascades across major exchanges, with long positions bearing the brunt of the selling pressure. This pattern suggests leveraged traders faced particular challenges during the recent price action.
The post Dogecoin ($DOGE) Price: Plunges 35% from 2024 Peak as Fed Policy Shifts Market Sentiment appeared first on Blockonomi.
