The sharp drop of 21% of Dogecoin (CRYPTO: DOGE) has raised alarm bells among traders and investors as the Cryptocurrency struggles to maintain key support levels that are critical to avoiding a further pullback.
| Cryptocurrency | Price | Market capitalization | 24 hour trend | 7 day trend |
| Dogecoin (CRYPTO:DOGE) | $0.2867 | $42.2 billion | -21.2% | -29.3% |
| Shiba Inu (CRYPTO: SHIB) | 0.00001987 dollars | 11.7 billion dollars | -17.9% | -29% |
| Pepe (CRYPTO: PEPE) | 0.00001987 dollars | 6.5 billion dollars | -19.7% | -34.5% |
Trader analysis
Cryptocurrency trader Kevin recalled his controversial prediction from November 13, according to which Dogecoin would fall to a range between $0.26 and $0.28, something that has finally come true.
Despite the criticism, Kevin maintains his view that DOGE will eventually recover from these levels to aim for new all-time highs, although not before undergoing a significant correction.
Kevin explained that on the weekly timeframe, Dogecoin appears to be experiencing a typical bull market pullback, following a previous golden cross (a bullish technical indicator) that lacked an initial correction.
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He noted Dogecoin’s history of enduring multiple 50% corrections during previous cycles.
A 45% retracement to macro support within the gold stock market could align with past trends and indicate a continuation of the uptrend.
You can also read: MicroStrategy (MSTR) could pause Bitcoin purchases: What does it mean for investors?
However, Kevin stressed that if DOGE closes below $0.26 on the weekly chart, it could be a sign of serious structural problems in the market. Until then, the current decline is considered a normal bull market pullback.
Dogecoin Statistics
Data from Coinglass shows that total liquidations in the last 24 hours stand at $85.7 million, with the majority of $71.6 million being long liquidations.
DOGE derivatives trading has seen a 75% increase in volume, while open interest has fallen by 33.3%, indicating declining investor interest in the meme cryptocurrency.
Image: Shutterstock
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