In the past 24 hours, Dogecoin's trading volume surged, and the liquidation volume also increased. The surge in these indicators is due to a significant drop in Dogecoin's price, which fell over 5% in the past 24 hours.

Dogecoin trading volume and liquidation volume have soared significantly

CoinMarketCap data shows that the trading volume of Dogecoin has surged by over 57% in the past 24 hours, exceeding $6 billion. Meanwhile, Coinglass data shows that the liquidation amount of Dogecoin has surpassed $31 million, with long positions liquidated at $25 million and short positions at $5.8 million.

As Dogecoin's price fell below the $0.4 range, long positions suffered the most. This development occurred after Jerome Powell's speech, which painted a bearish picture for this most significant meme coin. As cryptocurrency analyst Kevin Capital revealed, Dogecoin's technical indicators have turned bearish, and the macroeconomic fundamentals will only cause greater damage.

Powell hinted that the Federal Reserve may pause interest rate cuts next year, which immediately triggered bearish sentiment among traders and sparked a wave of selling. This led to a surge in trading volume as investors sought to sell their tokens, as the Fed's hawkish stance is unfavorable for risk assets like Dogecoin.

However, Kevin Capital believes that traders are overreacting to Jerome Powell's speech. This cryptocurrency analyst thinks that Dogecoin will recover from this price correction and suggests buying on dips. However, it is worth noting the correlation between Dogecoin and Bitcoin, as Kevin Capital previously pointed out that Dogecoin's next move will depend on BTC.

Bitcoin's price has fallen below the psychological level of $100,000, and it currently appears bearish. Therefore, Dogecoin's price is unlikely to rebound before a bullish reversal occurs in Bitcoin.

Increased volatility is not uncommon

Cryptocurrency analyst Master Kenobi also commented on Dogecoin's price decline, stating that increased volatility is not unusual at this stage of the bull market. However, this analyst advises traders to avoid being shaken out and to stick to their positions. Meanwhile, he claims that market makers injecting funds into the market prefer that market participants lose 90% rather than gain 10 times.

Bitcoinist recently reported that market sentiment for Dogecoin has turned negative again, indicating that Dogecoin holders may be considering selling their tokens, even at a loss. Kevin Capital previously stated that the Dogecoin bull market is far from over, suggesting that despite the price correction, there is currently no need to be bearish. He advises long-term holders to wait and see for a price rise.

According to CoinMarketCap data, as of this writing, Dogecoin's price is approximately $0.36, having fallen over 5% in the past 24 hours.