Dogecoin Surges Amid Market Downturn: Analyzing the 150% Volume Spike and $979M Sell-off

Dogecoin Dips Amid Broader Market Sell-Off, Signaling Shift in Crypto Trader Sentiment

The dog-themed cryptocurrency Dogecoin (DOGE) experienced a dip on Friday, mirroring a broader sell-off across the crypto market. This reversal comes after a recent bullish trend, prompting traders to engage in profit-taking.

DOGE saw a nearly 8% decline in 24 hours, indicating a risk-off shift among crypto traders. The drop was accompanied by a significant 155% increase in trade volume, with 11.53 billion DOGE, or $2,028,469,753, being traded in the same period.

The surge in trading volume could suggest institutional distribution rather than retail fear, as traders seek to capitalize on DOGE's volatility. At the time of writing, Dogecoin was trading at $0.176, with a weekly loss of 14%. The market remains volatile, with resistance currently at $0.190 and support emerging between $0.169 and $0.170.

Broader Crypto Market Turbulence Leads to Leveraged Bets Liquidation

The fresh uncertainty in global markets has sent major cryptocurrencies tumbling in the early Friday session, resulting in the liquidation of nearly $1 billion in leveraged bets.

According to CoinGlass data, traders lost $979 million in liquidations, with $870 million coming from long positions, indicating a wipeout of bullish positions. Shorts, on the other hand, contributed $110 million to the liquidations.

The liquidations have hit major cryptocurrencies, with Bitcoin leading the pack with $345 million liquidated in the past 24 hours, according to CoinGlass data. Dogecoin saw $27 million liquidated as altcoin traders were caught off guard by the unexpected drop.

The cascade of liquidations suggests market extremes, implying that a price reversal might be on the horizon as market sentiment swings in one direction.