Why Did dogecoin Price Drop Despite the Improvement in the Crypto Market?
In a riveting turn of events amid the broader crypto market recovery witnessed recently, Dogecoin appears to be defying the broader trend in the market as its price exhibits a weakening trajectory today, April 9. This is primarily attributed to numerous bearish trends. Chain factors have the potential to pull DOGE’s price towards a downward trend. Let’s take a closer look at the factors that may have led DOGE’s price to decline.
Factors Reflecting DOGE’s Downward Movement
Interestingly, the weakening price trajectory, with Dogecoin’s price falling below $0.2 as of press time, according to data from CoinMarketCap, brings with it numerous bearish factors, including massive whale dumps and on-chain data indicating a loss of investor interest. Here’s a deeper dive:
Derivatives Data Increases Bearish Sentiments
According to on-chain analysis prepared by Coinglass, DOGE’s derivatives volume decreased by a significant 5.04% to $3.97 billion, accompanied by a 1.44% decrease in open interest to $1.66 billion. This marked a significant decline in market activity for DOGE, and combined with the downward movement of the OI-weighted funding rate remaining at 0.0347%, the data indicates a significant decline in investor interest in the asset. Additionally, as the price continues to fall, this data underscores the overall bearish trend in the market.
Liquidations on the Rise
Meanwhile, 58,052 traders were liquidated in the last 24 hours and the total liquidation was evaluated at $195.92 million. The largest liquidation order was on Binance -BTCUSDT worth $5.28 million. Amid this, Dogecoin liquidations totaled $5.36 million; long positions were $3.01 million and short positions were $2.34 million. This underlined the prevailing bearish sentiment among crypto market traders and investors in line with DOGE’s decline.
Whale Spills Huge Amounts of DOGE
Additionally, a staggering 245 million DOGE was dumped on Robinhood, an American exchange, by an unknown address today, according to data provided by Whale Alert. This further fueled a bearish trend for DOGE, revealing that the whale was losing confidence in the asset and increases in token supply on exchanges.
Although the blockchain tracker has also highlighted DOGE accumulations, the massive bearish decline in the market for DOGE surfing as mentioned above seems to have undermined the accumulations.
245,000,000 #DOGE (49,622,788 USD) transferred from unknown wallet to: #Robinhood
— Whale Alert (@whale_alert) April 8, 2024
Also Read: Despite Ethereum ETF Uncertainty, ETH Price Keeps Firms Above $3,700, What’s Next?
Dogecoin Price Changes with Downtrend
Meanwhile, after a highly volatile move, the price of the Dogecoin token recorded a decline of 0.61% in the last 24 hours and currently stands at $0.1993. This high volatility, accompanied by a downward trend, indicates that there is serious uncertainty and selling pressure in the market. Moreover, this decline was further strengthened by a 0.60% decline in market cap and a 7.94% decline in 24-hour trading volume, which strengthened DOGE’s downward trend.
Also Read: US Treasury Wants Stronger Crypto Controls for National Security
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