In early August, major cryptocurrencies, including Dogecoin, showed significant volatility due to dollar strengthening and changing macroeconomic conditions.
Market Volatility
Since the beginning of August, the cryptocurrency market has experienced strong fluctuations. The volume of liquidated positions amounted to over $751 million, with the majority of losses stemming from long positions, totaling $706 million. This indicates that traders were caught off guard amid rapid sell-offs.
Dogecoin Dynamics
As of now, Dogecoin's price has fallen by 9.17% in the last 24 hours, reaching $0.201, and dropping 11% over the week. This cryptocurrency has steadily declined from a high of $0.248 on July 28 and continues to drop, which may lead to another test of the $0.194 support level at the 50-day SMA.
Market and Macroeconomic Factors
The US dollar has strengthened by more than 3% over four weeks, indicating potential financial tightening, which often prompts traders to reduce their risky positions. This week, the central bank held interest rates steady at 4.25%, disappointing traders' hopes for further cuts.
The cryptocurrency market remains under pressure amid changing macroeconomic conditions, and the further dynamics of Dogecoin will depend on its ability to hold above significant support levels.
