Dogecoin continues to lose value, dropping below a key support level amidst an overall downturn in the cryptocurrency market.
Dogecoin's Decline and Its Consequences
Dogecoin has shown significant decline, dropping below the critical support level of $0.20. In the last 24 hours, the memecoin lost more than 9% of its value, reaching $0.201, reflecting an overall market drop of 11% over the past week.
Overall Situation in the Crypto Market
According to CoinGlass, over $751 million in long positions have been liquidated amid the rapid sell-off. This coincides with a rise in the US dollar, where the DXY index increased by more than 3% in the last month. Typically, a stronger dollar indicates tighter financial conditions, leading to reduced investments in high-risk assets like Dogecoin.
Outlook and Recommendations for Traders
The situation of Dogecoin is concerning for traders, especially after it fell below the 200-day moving average. The current price may be under pressure, but a recovery above $0.212 could pave the way for regaining momentum. Otherwise, the next key support level could be at $0.194.
The overall situation in the cryptocurrency market remains tense, with high liquidity levels and position liquidations. Dogecoin and other altcoins may face additional challenges in the coming days.
