After a brief rise on Monday, Dogecoin faced a significant reversal this week. This meme-based cryptocurrency peaked on Tuesday, then began a sharp decline that continued until Thursday.
On Wednesday, the price of Dogecoin briefly reached a high of $0.127, followed by profit-taking that led to a price drop. As of the time of writing, the trading price of Dogecoin is $0.1151, down 7.74% in the past 24 hours. This cryptocurrency is showing a downward trend across all major timeframes, including hourly, daily, and weekly charts.
Mass liquidations hit the cryptocurrency futures market
In the past 24 hours, the cryptocurrency derivatives market has experienced severe volatility. Over $509 million in futures positions were liquidated, an increase of 57% compared to the previous day. Among these, long positions accounted for the vast majority, and traders betting on rising prices faced losses.
The Federal Reserve has decided to maintain interest rates between 3.5% and 3.75%, intensifying the market's risk-averse sentiment. Although this decision was widely anticipated in the market, investors are still shifting funds towards safe-haven assets. This trend has triggered a wave of sell-offs in the cryptocurrency market.
According to CoinGlass data, the total liquidation amount for Dogecoin within 24 hours was $6.27 million. During the same period, the open contract volume for the meme coin decreased by 1.38% to $1.4 billion.
Trading indicators depict a pessimistic outlook.
In recent weeks, whale trading activity has significantly decreased. In the past four weeks, large transactions over $1 million have declined by 94.6%. According to AliCharts data, the number of such transactions plummeted from 109 to only 6.
Spot trading volume dropped by 13% in the past 24 hours to $1.16 billion. The reduction in trading activity aligns with the overall negative sentiment surrounding the asset.
A significant exception has emerged in the futures market. Bitmex exchange reported that its futures trading volume surged an astonishing 10,782% within 24 hours. The platform's trading volume reached $200.98 million, standing out remarkably against the backdrop of declining other indicators.
Technical indicators show key support and resistance levels that traders need to focus on. The immediate support level is at $0.11, and if selling pressure continues, the secondary support level is at $0.10. On the upside, the resistance level is at $0.133, corresponding to the 50-day moving average. Any sustained rebound will need to break through this resistance level.