**Introduction**
Over the past 24 hours, the price of Dogecoin (DOGE) has experienced a significant correction, falling by more than 5%. This price fluctuation has led to a surge in Dogecoin trading volume, accompanied by a large-scale liquidation activity. The primary cause of this shift is the Federal Reserve’s hawkish stance, which has triggered a strong bearish sentiment in the market, particularly towards meme coins like Dogecoin. This article will delve into the reasons behind the Dogecoin price decline, the market’s response, and the potential future price trends.
**Latest Price and Market Data of Dogecoin (DOGE)**
DOGE (Dogecoin)
No.33
**Dogecoin Overview**
$0.32277
– $0.03795
-10.52%
Real-Time Data ·
12:51:57
**24H High:** 0.36734
**24H Low:** 0.30001
**All-Time High:** 0.73757
**All-Time Low:** 0.0000855
**24H Trading Volume:** 28.65 billion
**24H Turnover:** 9.24 billion
**Total Supply:** 129.62 billion
**Market Cap:** 47.58 billion
**24H Price Change:** +22.44%
**Circulating Supply:** 14,727,427,638.71
**Opening Price Yesterday:** 0.38431
**Closing Price Yesterday:** 0.35193
**Circulation Rate:** 0%
**K-Line Chart**
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Dogecoin Trading Volume Surge and Liquidation Spike
According to CoinMarketCap, Dogecoin’s trading volume surged by 57% in the past 24 hours, exceeding $6 billion. This increase is primarily due to the sharp decline in Dogecoin’s price, prompting investors to hastily sell their tokens. Meanwhile, data from Coinglass shows that the liquidation volume of Dogecoin also broke through $54.17 million in a short period, liquidating a large number of long and short positions, with long positions amounting to $43.3 million and short positions liquidating $10.87 million.
These fluctuations are partly attributed to Federal Reserve Chairman Jerome Powell’s speech. In his remarks, Powell hinted that the Fed might pause interest rate cuts, directly triggering market concerns about risk assets, especially high-risk assets like meme coins, with Dogecoin being no exception. As Dogecoin’s price fell below the critical support level of $0.4, long positions suffered significant losses, and market sentiment turned sharply negative.
Federal Reserve’s Hawkish Remarks Trigger Market Panic
Powell’s speech raised concerns about inflation and unemployment rate forecasts for 2025, leading many investors to feel uneasy about the future economic outlook. For highly volatile assets like Dogecoin, macroeconomic factors often have a substantial impact. Under the Fed’s hawkish stance, expectations for interest rate hikes continue to rise, resulting in widespread sell-offs of risk assets.
According to industry data from CoinGecko, as Dogecoin’s price fell, Bitcoin (BTC) also dropped below the psychological threshold of $100,000, further exacerbating bearish sentiment in the market. As one of the major cryptocurrencies, Dogecoin’s price is closely related to Bitcoin’s movements, so Bitcoin’s weakness further dragged down Dogecoin’s performance.
Correlation Between Dogecoin and Bitcoin
Cryptocurrency analyst Kevin Capital pointed out that Dogecoin’s price trajectory will largely depend on Bitcoin’s performance. There is a strong correlation between Dogecoin and Bitcoin, especially during periods of high market volatility, where Dogecoin’s price typically follows Bitcoin’s trend. Therefore, analyzing Bitcoin’s price changes is an important reference for predicting Dogecoin’s future price movements.
Despite the current bearish trend of Bitcoin, Kevin Capital still believes that Dogecoin will recover after a price correction and advises investors to buy at lower points. However, in the short term, whether Dogecoin’s price can rebound still depends on Bitcoin’s ability to stage a strong recovery.
Increased Volatility: Dogecoin Market’s Turbulent Period
Cryptocurrency analysts like Master Kenobi noted that the volatility of Dogecoin’s price is a common phenomenon in the later stages of a cryptocurrency bull market. Although Dogecoin’s price has experienced a correction, its long-term trend remains positive, especially in the current bull market cycle. Historically, Dogecoin has undergone similar corrections followed by rapid rebounds. Kenobi emphasized that although the RSI (Relative Strength Index) indicates that the market may decline further, Dogecoin’s market cycle still holds potential.
It is worth noting that Dogecoin’s current RSI level is around 43, indicating that Dogecoin’s short-term trend may still face some pressure. Analysts predict that if the RSI returns to the overbought range, Dogecoin may welcome a new rise.
Dogecoin’s Market Sentiment and Future Outlook
Despite the current negative market sentiment, Dogecoin still maintains a strong market position. According to CoinMarketCap, Dogecoin’s market capitalization remains at $47.6 billion, ranking as the seventh-largest cryptocurrency. Although Dogecoin’s price has dropped 35% from its 2024 high of $0.47, it still occupies an important position in the cryptocurrency market.
For long-term holders, analysts suggest not to rush to sell but to patiently wait for the market to recover. Kevin Capital believes that although there may be more downward pressure in the short term, Dogecoin’s long-term prospects remain optimistic, especially as the cryptocurrency market gradually enters a new favorable cycle.
Conclusion
Recent price fluctuations of Dogecoin indicate that market sentiment is highly sensitive to macroeconomic signals, especially reacting sharply to changes in Federal Reserve policies. With the continued influence of the Fed’s hawkish stance, high-risk assets like Dogecoin may continue to face pressure. However, in the long run, Dogecoin’s market outlook remains promising. Investors can better seize investment opportunities by analyzing the correlation between Bitcoin and Dogecoin and paying attention to the macroeconomic environment of the cryptocurrency market.
The current market volatility provides long-term investors in Dogecoin with an opportunity to buy at lower prices, while for short-term traders, staying vigilant and going with the trend will be the most prudent choice.
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