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In the past 24 hours, the trading volume of Dogecoin has surged, and the liquidation volume has also risen accordingly. The surge in these indicators is due to a significant drop in the price of Dogecoin, which has fallen by more than 5% in the past 24 hours.
Dogecoin trading volume and liquidation volume have surged significantly
CoinMarketCap data shows that the trading volume of Dogecoin has increased by more than 57% in the past 24 hours, with a trading volume exceeding $6 billion. Meanwhile, Coinglass data shows that the liquidation amount of Dogecoin has exceeded $31 million, with long positions accounting for $25 million and short positions accounting for $5.8 million.
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With the price of Dogecoin falling below the $0.4 range, long positions have been hit the hardest. This development occurred after Jerome Powell's speech, which painted a bearish outlook for this important meme coin. As crypto analyst Kevin Capital revealed, Dogecoin's technical indicators have turned bearish, and the macroeconomic fundamentals will only cause more damage.
Powell's hint that the Federal Reserve may pause rate cuts next year immediately triggered a bearish sentiment among traders and sparked a sell-off. This led to a surge in trading volume, as investors sought to sell their tokens due to the Fed's hawkish stance, which is unfavorable for risk assets like Dogecoin.
However, Kevin Capital believes that traders have overreacted to Jerome Powell's speech. The crypto analyst believes that Dogecoin will recoup this price correction and suggests buying the dip. It's worth noting that Dogecoin's performance is closely tied to Bitcoin, and as Kevin Capital previously pointed out, Dogecoin's next move will depend on BTC.
Bitcoin prices have fallen below the psychological level of $100,000, and the outlook is bearish. Therefore, Dogecoin's price is unlikely to rebound until Bitcoin experiences a bullish reversal.
Increased volatility is not uncommon
Crypto analyst Master Kenobi also commented on the Dogecoin price drop, stating that increased volatility is not uncommon at this stage of the bull market. However, the analyst advised traders to avoid being shaken by the fluctuations and to stick to their positions. At the same time, he claimed that market makers who inject funds into the market prefer for market participants to lose 90% rather than gain 10 times the returns.
Bitcoinist recently reported that the market sentiment for Dogecoin has turned negative again, indicating that Dogecoin holders may be considering selling their tokens, even at a loss. Kevin Capital had previously stated that the Dogecoin bull market is far from over, suggesting that despite the price correction, there is no need to be bearish at the moment. He advised long-term holders to wait and see, expecting the price to rise.
According to CoinMarketCap data, at the time of writing, the price of Dogecoin is around $0.36, having declined by more than 5% in the past 24 hours.
