The popular dog-themed Cryptocurrency Dogecoin (CRYPTO: DOGE) fell sharply this Wednesday amid the general market decline, precipitated by the aggressive stance of the Federal Reserve.
What happened
The world’s largest meme coin by market capitalization fell to a low of $0.34 overnight, before recovering to reach $0.36.
DOGE lost more than 6% in the last 24 hours, while its trading volume skyrocketed 62% to $6.57 billion, making it one of the most traded tokens of the day.
The well-known cryptocurrency analyst Kevin He said in X that this drop was expected and that it was “obvious.”
More Read
We predicted this move down on #Dogecoin perfectly. Honestly it was staring us all in the face and it was easy to see. If your guru couldn’t spot that one then you should question there talent level https://t.co/wm5tk3qC0L
— Kevin (@Kev_Capital_TA) December 18, 2024
Interestingly, a well-known early cryptocurrency user, Glauber Contessotoalso known as the ‘Dogecoin Millionaire’, confessed on X that he was also among the sellers.
Sorry guys, I had to sell some #Dogecoin https://t.co/a7pro4wH5S
— SlumDOGE Millionaire (@ProTheDoge) December 19, 2024
You can also read: Bitcoin, Ethereum and Dogecoin lose strength after the Fed’s stance: What does it mean for 2025?
Why is it important
DOGE technical indicators painted a bearish picture at the time of writing, according to TradingView.
The moving average convergence/divergence (MACD) indicator, which compares two exponential moving averages of price, showed a “sell” signal. Furthermore, most of the shorter moving averages hinted that the price could fall further.
That said, the Bull Bear Power indicator, used to measure the strength of buyers and sellers in the market, showed a “Neutral” reading.
On the other hand, the derivatives market surprised, as more than 84% of the accounts of the main Binance traders had long positions in DOGE at the time of writing, according to Coinglass.
Dogecoin price movement
At the time of writing, Dogecoin was trading at $0.3616, down 6.47% in the last 24 hours, according to data from Benzinga Pro.
Photo courtesy of Shutterstock
You can also read: Ibex 35 futures lead falls: How do the Fed’s decisions impact Europe?
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