Dogecoin Trading Volume And Liquidations Witness Significant Spike

CoinMarketCap data shows that Dogecoins's trading volume is up over 57% in the last 24 hours, with over $6 billion traded during this period.

The price of Dogecoin has dropped significantly in the last 24 hours, and this has led to a surge in trading volume and liquidations.

The Dogecoin trading volume has surged by over 57% in the last 24 hours, with over $6 billion traded during this period. At the same time, Dogecoin’s liquidations have crossed $31 million, with $25 million and $5.8 in long and short positions liquidated, respectively, according to data from Coinglass.

This surge in trading volume and liquidations is a result of the Dogecoin price crashing below the $0.4 range. The price drop was triggered by Jerome Powell’s speech, which painted a bearish picture for the leading meme coin.

As reported by crypto analyst Kevin Capital, the technical indicators for Dogecoin were already bearish, and the macroeconomic fundamentals only worsened the situation.

Powell hinted that the US Federal Reserve will probably pause on the rate cuts next year, which immediately sparked a bearish sentiment among traders and led to a wave of sell-offs.

This contributed to the spike in trading volume, as investors sought to offload their coins, considering how the Fed being hawkish is bearish for risk assets like Dogecoin.

However, Capital believes that traders are overreacting to Powell’s speech. The crypto analyst is optimistic that Dogecoin will recover from this price correction, stating that the dip will be bought.

But it is important to note Dogecoin’s correlation with Bitcoin, as Capital had earlier pointed out that DOGE’s next move will be determined by BTC.

The price of Bitcoin has dropped below the $100,000 psychological price level and appears bearish at the moment. In this case, the recovery of the Dogecoin price is unlikely to occur until Bitcoin experiences a bullish reversal.