Dogecoin experienced a sharp reversal this week after a brief Monday rally. The meme cryptocurrency reached its peak on Tuesday before entering a steep decline that has persisted through Thursday.
The digital asset hit a high of $0.127 on Wednesday before profit-taking drove prices lower. At the time of writing, Dogecoin trades at $0.1151, representing a 7.74% decline over the past 24 hours. The cryptocurrency shows losses across all major timeframes, including hourly, daily, and weekly charts.
Massive Liquidations Hit Crypto Futures Market
The past 24 hours saw significant turbulence in the crypto derivatives market. Over $509 million in futures positions were liquidated, marking a 57% increase from the previous day. Long positions accounted for the majority of these liquidations as traders betting on continued price appreciation faced losses.
The Federal Reserve's decision to maintain interest rates between 3.5% and 3.75% contributed to the market's risk-off mood. Despite the decision being widely anticipated, investors rotated capital into safe-haven assets. This movement triggered a selloff across cryptocurrency markets.
Dogecoin's 24-hour liquidations totaled $6.27 million, according to CoinGlass data. Open interest for the meme coin declined 1.38% to $1.4 billion during the same period.
Trading Metrics Paint Bearish Picture
Whale activity has decreased dramatically over recent weeks. Large transactions exceeding $1 million dropped 94.6% over the past four weeks. The number of such transactions fell from 109 to just six, according to data from Alicharts.
Spot trading volumes declined 13% in the last 24 hours to $1.16 billion. This reduction in trading activity aligns with the broader negative sentiment surrounding the asset.
One notable exception emerged in the futures market. Bitmex exchange reported a remarkable 10,782% surge in futures volume over 24 hours. Trading volume on the platform reached $200.98 million, standing out amid otherwise declining metrics.
Technical indicators point to key support and resistance levels for traders to monitor. The immediate support sits at $0.11, with a secondary level at $0.10 if selling pressure continues. On the upside, resistance appears at $0.133, which corresponds to the 50-day moving average. This level would need to break for any sustained recovery.
