Trusted

Dogecoin (DOGE) Faces Fresh Challenges as Market Liquidations Exceed $300 Million

2 mins
Updated by Daria Krasnova
Join our Trading Community on Telegram

In Brief

  • Dogecoin price fell, with $3.08 million liquidated amid the broader $341 million market wipeout.
  • Rising volume with declining price suggests a strong downtrend, risking a fall below $0.10.
  • DOGE faces DOGE faces resistance as failure to break it t could push it down to $0.097.
  • promo

Dogecoin (DOGE), the meme coin with the highest market capitalization, briefly climbed to $0.11 on August 25. However, following a decline over the next 24 hours, it slipped back to $0.10.

This drop in DOGE’s value mirrors a broader market downturn that has impacted many other cryptocurrencies, leading to widespread declines across the sector.

Dogecoin Takes 1% of the Market Wipeout

According to Coinglass, the recent price drop in Dogecoin (DOGE) and other cryptocurrencies led to $341 million in liquidations within 24 hours. Liquidation happens when traders can’t meet margin requirements, forcing exchanges to close positions, especially those with high leverage. Dogecoin accounted for roughly 1% of the total liquidations, amounting to $3.08 million, with long positions being hit hardest.

Liquidations not only reflect a wave of position closures but also play a role in shaping price trends. For DOGE, the increase in long liquidations amid the price drop indicates a heightened risk of the coin’s value falling to its underlying support level.

Read more: Dogecoin vs. Bitcoin: An Ultimate Comparison

Crypto Market Liquidations.
Crypto Market Liquidations. Source: Coinglass

If short liquidations had dominated, Dogecoin (DOGE) would have had a better chance of a quick rebound. During this period, DOGE’s trading volume surged above $700 million before dipping below that level.

Volume serves as a key indicator of market interest, showing how much value is being traded. It can also suggest the potential direction of an asset’s price.

For example, when volume rises along with price, it typically reinforces an uptrend. Conversely, if volume decreases while the price increases, the upward momentum weakens, suggesting the asset’s value may decline.

Dogecoin Volume.
Dogecoin Volume. Source: Santiment

For Dogecoin, the surge in volume alongside a price decrease indicates that the downtrend could gain more power. If this remains the same, the meme coin’s price might drop below $0.10 as it did earlier today.

DOGE Price Prediction: The Struggle Continues

The daily chart indicates that Dogecoin (DOGE) is close to retesting the support level around $0.10. However, resistance at this same price level could prevent further gains unless bulls manage to break through it.

Adding to the bearish outlook, DOGE is currently trading below a descending triangle, a bearish technical pattern. This pattern is characterized by a declining upper trendline, indicating lower highs, and a flat horizontal line marking support.

Read more: Dogecoin (DOGE) Price Prediction 2024/2025/2030

Dogecoin Daily Analysis.
Dogecoin Daily Analysis. Source: TradingView

If DOGE fails to break above this descending triangle, its price could fall to $0.097, with a worst-case scenario seeing a drop to $0.080.

Conversely, if DOGE breaks above the triangle, it could reverse sharply to the upside, potentially pushing the price towards $0.12.

Top crypto projects in the US | October 2024
Coinbase Coinbase Explore
Coinrule Coinrule Explore
3Commas 3Commas Explore
Uphold Uphold Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | October 2024
Coinbase Coinbase Explore
Coinrule Coinrule Explore
3Commas 3Commas Explore
Uphold Uphold Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | October 2024

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

IMG_3173.jpg
Victor Olanrewaju
Victor Olanrewaju is a technical and on-chain analyst at BeInCrypto, where he monitors the activities of mid- and large-scale investors, commonly known as crypto whales, to detect investment trends across diverse cryptocurrencies, including Bitcoin, altcoins such as Solana, XRP, Cardano, and Toncoin, as well as meme coins like Dogecoin, Shiba Inu, and Pepe. Additionally, he covers emerging trends including Tap-to-Earn games, AI tokens, and real-world assets (RWA). Before joining BeInCrypto...
READ FULL BIO
Sponsored
Sponsored