In the past 24 hours, the trading volume of Dogecoin has surged, and the liquidation amount has also increased. This spike in indicators is due to a significant drop in the price of Dogecoin, which has fallen more than 5% in the past 24 hours.
The trading volume and liquidation amount of Dogecoin have soared.
CoinMarketCap data shows that Dogecoin's trading volume has increased by over 57% in the past 24 hours, with a trading amount exceeding $6 billion. At the same time, Coinglass data indicates that Dogecoin's liquidation amount has surpassed $31 million, with long position liquidations amounting to $25 million and short position liquidations amounting to $5.8 million.
As Dogecoin's price fell below the $0.4 range, long positions took the hardest hit. This development occurred after Jerome Powell's speech, which painted a bearish picture for this most important meme coin. As cryptocurrency analyst Kevin Capital revealed, Dogecoin's technical indicators are already bearish, and macroeconomic fundamentals will only cause greater damage.
Powell hinted that the Federal Reserve might 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 Dogecoin will recover from this price pullback and suggests buying the dips. However, it is worth mentioning the correlation between Dogecoin and Bitcoin, as Kevin Capital previously pointed out, Dogecoin's next move will depend on BTC.
Bitcoin's price has fallen below the psychological level of $100,000, and is currently bearish. Therefore, it is unlikely that Dogecoin's price will rebound before Bitcoin experiences a bullish reversal.
Increased volatility is not uncommon.
Cryptocurrency analyst Master Kenobi also commented on the drop in Dogecoin's price, stating that increased volatility is not uncommon at this stage of a bull market. However, this analyst suggested that traders should avoid being shaken out and instead hold their positions. Meanwhile, he claimed that market makers injecting funds into the market would rather see market participants lose 90% than gain 10 times their investment.
Bitcoinist recently reported that the market sentiment around 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 pullback, there is currently no need to be bearish. He advised long-term holders to wait and see, anticipating a price increase.
According to CoinMarketCap data, at the time of writing, Dogecoin's price is about $0.36, having dropped more than 5% in the past 24 hours.
