Why is Dogecoin Crashing? What Happened to Dogecoin in the Last 24 Hours?

Dogecoin Price Slumps Amidst Crypto Market Downturn

As Bitcoin plummeted 11.25% in value, the cryptocurrency market experienced a sell-off. Dogecoin, the popular memecoin, suffered a significant blow, losing 32% over the past three days.

Dogecoin Metrics

According to DeFiLlama, Dogecoin's total value locked (TVL) has decreased by 32.65% since the market plunge began. Open interest has also dropped by nearly 50%.

Technical Analysis

Dogecoin is currently trading at $0.28 with support near $0.27 from the 100-day moving average. The price has fallen below the 20- and 50-day moving averages, while the 200-day moving average is around $0.17. The RSI indicator is at 30.15, indicating that Dogecoin has entered oversold territory.

Trading Momentum

Data from Coinglass shows that Dogecoin remains in a risky zone. The large number of short trades indicates that whales may be accumulating the token.

Outlook

Dogecoin typically follows Bitcoin's price movements. As Bitcoin attempts to recover, we may see a similar pattern in Dogecoin. However, the possibility of a further decline cannot be ruled out.

Trader Recommendations

Given the volatility in the market, it is advisable to avoid leveraged trading during this period. Dollar-cost averaging may present an opportunity for long-term investors.