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Dogecoin Plummets 9% Amid Dollar Rally and Market Turmoil, Key Support Levels Tested

Dogecoin (DOGE) plummeted 9.17% within 24 hours, breaching the crucial 200-day simple moving average support level at $0.212. The sharp decline reflects broader crypto market volatility fueled by macroeconomic pressures.

A surge in leveraged position liquidations exacerbated the selloff, with over $751 million wiped out across cryptocurrency markets. Long positions suffered disproportionately, accounting for $706 million of the total liquidations.

The U.S. dollar index (DXY) climbed over 3% in four weeks, intensifying pressure on risk-sensitive assets like cryptocurrencies. Investor sentiment further dampened after June’s core PCE price index showed a persistent 2.8% annual inflation rate, reducing risk appetite.

Traders are monitoring critical technical support levels at $0.20 and the 50-day SMA at $0.194 to gauge potential recovery signals. Market analysts caution that sustained dollar strength could continue challenging meme coins and speculative assets.

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