In a notable turn of events amidst the broader crypto market recovery witnessed recently, Dogecoin price appears to have bucked the broader market trend today, April 9, as it has taken a downward trajectory. This is mainly due to numerous bear markets. A chain of factors could push the price of DOGE towards a downward trend. Here, we take a closer look at the factors that may have depressed DOGE's price.
Factors reflecting bearish movement in DOGE
Interestingly, Dogecoin's downward price trajectory, with the price below $0.2 at the time of writing, according to CoinMarketCap data, has led to on-chain data suggesting a huge whale dump and a loss of investor interest. This is in line with a number of bearish factors including: We'll go into more detail here.
Derivatives data fuels bearish sentiment
According to on-chain insights streamlined by Coinglass, DOGE's derivatives trading volume saw a notable drop of 5.04% to $3.97 billion, followed by a further plunge of 1.44% in open interest to $1.66 billion. Did. This indicates a significant decline in market activity for DOGE, and coupled with the downward trend in the OI weighted funding rate, which remains at 0.0347%, the data indicates that investor interest in DOGE has declined significantly. ing. Moreover, as prices continue to decline, this data highlights bearish sentiment across the market.
Liquidation is on the rise
Meanwhile, it is noteworthy that 58,052 traders were liquidated in the past 24 hours, with the total liquidation valued at $195.92 million. The largest liquidation order occurred on Binance -BTCUSDT with an amount of $5.28 million. Under these circumstances, the total liquidation amount of Dogecoin was $5.36 million, with long positions being $3.01 million and short positions being $2.34 million. This further highlighted the prevailing bearish sentiment among traders and investors in the crypto market, coinciding with the decline in DOGE.
Whale dumps tons of DOGE
Additionally, a staggering $245 million in DOGE was dumped into American exchange Robinhood by an unknown address today, according to data provided by Whale Alert. This further stoked the bearish mood on DOGE, increasing the supply of the token on exchanges and indicating whales’ loss of confidence in the asset.
Blockchain trackers also highlighted DOGE accumulation, but as mentioned above, the bearish trend of DOGE surfing in the market appears to have caused massive dumping to undermine the accumulation.
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Dogecoin price is on a downward trend
Meanwhile, after a very volatile move, the Dogecoin token price has fallen by 0.61% in the past 24 hours and is currently sitting at $0.1993. This high volatility is accompanied by a further downtrend, indicating significant uncertainty and selling pressure in the market. Moreover, this decline was further reinforced by a 0.60% decline in market capitalization and a 7.94% decline in 24-hour trading volume, anchoring a bearish turn in DOGE.
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