Barely a week after BeInCrypto platform forecasted a major drop in Dogecoin (DOGE) price, the coin plummeted as low as $0.08, as against the predicted $0.10. Dogecoin was not the only cryptocurrency affected by this major price drop. Still, it had the worst drop among the rest of the affected coins while measuring it according to market capitalization.
On a more negative note, the major drop in Dogecoin has been responded to by massive liquidation by whales. Also, the last 24 hours have been very bad for the entire cryptocurrency industry; the effect on Dogecoin is far worse, considering the 24.89% drop in the price.
The rest of the affected coins are Ethereum (ETH), Binance (BNB), and Solana (SOL), which also dropped by double digits. To cause this drop, a Dogecoin whale moved 117.52 million DOGE units worth $11 million to the Robinhood exchange. This single development worsened investors’ behaviour, affecting the trading pattern in exchange platforms like Robinhood, hence recommending more sell-offs.
Dogecoin Experiences the Biggest Liquidation After June
Aside from the significant corrections, Dogecoin had the biggest liquidation in terms of value since the middle of June. Simon Chandler from the crypto news platform explained that liquidation in the cryptocurrency market happens when an exchange shuts a trader’s open contract because of an insufficient margin, which is small enough to maintain the position.
Chandler said that such a scenario could also happen if there’s high volatility and leverage in the market – as exemplified in present-time market activity. Coinglass’s data shows that the cumulative liquidated assets in the past 24 hours amounted to $14.74 million.
Short positions, which include traders staking on the decreasing market, accounted for $1.66 million, while long traders, who are made up of traders betting on the market price rise, saw a $3.08 million loss. Historical performance says that the price of Dogecoin reached its highest point two weeks ago at $0.14.
MACD Indicates Positive Performance in Cryptocurrency, Dogecoin Reads Bearish
Technically, the recent market structure differed from what’s applicable at $0.14. As of last week, Moving Average Convergence Divergence (MACD) indicated a positive coin performance and has continued to show bullish momentum in its negative territory.
The MACD reading also revealed a potential bearish momentum in Dogecoin. The analysis also warned that the selling pressure on Dogecoin might continue, with a worst-case scenario diminishing all hopes of a bullish recovery.
The coin’s Relative Strength Index (RSI), which usually measures the momentum of every cryptocurrency, indicates that Dogecoin is in an oversold territory. Dogecoin traders need more patience with X’s final integration of Dogecoin as the official payment coin on the platform.
This move is expected to boost Dogecoin’s value and renew investor’s confidence in its visibility. Meanwhile, a new Ethereum-based coin, PlayDoge (PLAY), has emerged and has already raised over $5.9 million in presale (which is currently ongoing). PlayDoge is on the verge of introducing a Tamagotchi-pattern of play-to-earn video games, featuring nostalgic 8-bit pictures.
Dogecoin Drops by 38% in A Week, 25% in A Month
It also indicates a future rebound in the price, but only if there is buying pressure at some point. The RSI Audi predicted that Dogecoin may likely return to $0.10 should the rebound eventually happen. It also warned Dogecoin may drop below $0.08 if the selling pressure persists.
The price of Dogecoin has officially dropped by 38% in one week and a 25% drop in one month. This continued drop has caused the coin to lose 8% of its annual profit. Analysis from random sources has insisted that August and September have always been Dogecoin’s worst months, considering its past price behaviour.
Statistically, the coin has always had a major drop in price from between -7.8% and -5.6%. This is another indication that more losses could occur before it can bounce back, before considering stepping further into a new all-time high.