Dogecoin Trading Volume Rises Over $6.5 Billion As Liquidations Cross $31 Million, What’s Going On?
Dogecoin trading volume has surged in the past 24 hours, and liquidation There has also been an increase during this period. The spike in these metrics comes as Dogecoin’s price drops sharply, down more than 5% in the past 24 hours.
Dogecoin trading volume and liquidations surge significantly
CoinMarketCap data Dogecoin’s trading volume was shown to have increased by more than 57% in the past 24 hours, with over $6 billion traded during the period. Meanwhile, Coinglass data shows Dogecoin’s Liquidation It has exceeded $31 million, with long and short positions liquidated at $25 million and $5.8 respectively.
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When Dogecoin price fell below the $0.4 range, long positions were hit the hardest. This development comes after a speech by Jerome Powell that painted a bearish picture for the most important meme coin. As a cryptocurrency analyst Kevin Capital revealedDogecoin’s technical indicators are already bearish, and macroeconomic fundamentals will only cause more damage.
Powell suggested that the U.S. Fed The possibility of a pause in interest rate cuts next year immediately sparked bearish sentiment among traders and triggered a wave of selling. Considering the Fed’s hawkish stance is bearish for risk assets like Dogecoin, this has led to a surge in trading volume as investors look to dump their tokens.
However, Kevin Capital believes traders are overreacting to Jerome Powell’s speech. The cryptocurrency analyst believes Dogecoin will resume this price correction and says he will buy the dip. However, it is worth mentioning the correlation between Dogecoin and Bitcoin. Kevin Capital has previously pointed out that Dogecoin’s next move will depend on Bitcoin.
this Bitcoin price has fallen Below the psychological price level of $100,000, it currently looks bearish. Therefore, Dogecoin price is unlikely to recover before Bitcoin experiences a bullish reversal.
Increased volatility is not uncommon
cryptocurrency analyst Master Kenobi Also commented on the Dogecoin price drop, noting that increased volatility is not unusual at this stage of the bull market. However, analysts advise traders to avoid being wiped out and instead hold on to their positions. He claims that market makers who inject money into the market would rather have market participants walk away with a 90% loss than with a 10x gain.
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Bitcoinists recently reported that Dogecoin sentiment Turning negative again suggests that DOGE holders may be looking to sell their tokens, even at a loss. Kevin Capital has 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 sit back and wait for higher prices.
Dogecoin price is reportedly around $0.36 at the time of writing, down more than 5% in the past 24 hours data From CoinMarketCap.
Featured image created using Dall.E, chart from Tradingview.com
