Dogecoin Faces a 23% Decline Heading to Yearly Low

Dogecoin's price has plunged over 23%, dropping from $0.11898 to $0.09166. Over $11.95 million in DOGE has been liquidated in the past 24 hours, predominantly from long positions.

In the past day, Dogecoin (DOGE) has experienced a significant drop of over 23%, falling from a high of $0.11898 to a low of $0.09166. This decline aligns with Bitcoin's recent plunge to $53,000, triggering a widespread sell-off in the crypto market.

The correlation between major cryptocurrencies is evident, as Dogecoin has paralleled Bitcoin's decline. At the time of writing, DOGE has rebounded slightly to $0.09584, with a market capitalization of $14.14 billion. The daily trading volume has surged over 69% to $1.69 billion.

Dogecoin has been the focal point of liquidations. According to CoinGlass, over $11.95 million worth of DOGE was liquidated in the past day, including $10.98 million in long positions and $963,430 in short positions. This contributed to DOGE's 23% drop to $0.09166, its lowest level in five months.

While this liquidation figure may seem modest compared to Bitcoin's $226 million, it has resulted in a notable price decline in the global market cap.

The factors driving this liquidation include the memecoin ecosystem's susceptibility to market fluctuations and speculation despite its high profile. The decline in Bitcoin has exacerbated volatility, prompting traders to liquidate positions to minimize losses.

Despite these setbacks, Dogecoin enthusiasts remain hopeful about its long-term potential, citing its robust community and transaction utility. If DOGE recovers, it could establish resistance at $0.1187 and potentially rally to $0.1267 and a monthly high of $0.161.

Conversely, continued decline could result in support at $0.8979 and further drops towards $0.07515, the yearly low. The coming days will be crucial in determining Dogecoin's trajectory amidst ongoing market volatility.