Why Dogecoin Price Fell Despite Crypto Market Recovery?

In a riveting turn of events, amid the broader crypto market’s recovery witnessed recently, Dogecoin appears to have defied the broader trend in the market as its price showcased a waining trajectory today, April 9. This comes primarily attributed to a plethora of bearish on-chain factors, potentially pulling DOGE’s price toward a downtrend. Here’s a closer look into the factors that may have pulled DOGE’s price into a slump.

Factors Mirroring DOGE’s Bearish Movement

Intriguingly, Dogecoin’s waining price trajectory, with its price dipping below $0.2 as of press time, per CoinMarketCap’s data, rides along numerous bearish factors encompassing colossal whale dump and on-chain data hinting at a loss of investor interest. Here’s a deeper dive:

Derivatives Data Fuels Bearish Sentiments

According to the on-chain insights streamlined by Coinglass, DOGE’s derivatives volume saw a notable 5.04% dip, reaching $3.97 billion, further escorted by an open interest plunge of 1.44%, reaching $1.66 billion. This signaled a significant reduction in market activity for DOGE, and, coupled with the OI-weighted funding rate’s tumbled movement, resting at 0.0347%, data flags a significant reduction in investor interest in the asset. Further, as the price continues to slip, this data underscores an overall bearish sentiment in the market.

Liquidations On The Rise

Meanwhile, notably, 58,052 traders were liquidated in the past 24 hours, with the total liquidations evaluated as $195.92 million. The largest liquidation order occurred on Binance -BTCUSDT, valued at $5.28 million. Amid this, Dogecoin liquidations totaled $5.36 million, with long positions at $3.01 million and short positions at $2.34 million. This further underscored a bearish sentiment prevailing among crypto market traders and investors, falling in line with DOGE’s fall.

Whale Dumps Massive Amounts Of DOGE

Additionally, per the data offered by Whale Alert, a staggering 245 million DOGE was dumped to Robinhood, an American exchange, by an unknown address today. This further stirred a pool of bearishness for DOGE, showcasing the whale’s loss of confidence in the asset, with supply gains for the token on exchanges.

🚨 🚨 245,000,000 #DOGE (49,622,788 USD) transferred from unknown wallet to #Robinhoodhttps://t.co/49ncXiaMbG

— Whale Alert (@whale_alert) April 8, 2024

Although the blockchain tracker highlighted DOGE accumulations as well, the massive dump appears to have undermined the accumulations, with a bearish trend for DOGE surfing in the market, as mentioned above.

Also Read: ETH Price Holds Firms Above $3,700 Despite Ethereum ETF Uncertainty, What’s Next?

Dogecoin Price Fluxes With A Falling Trend

In the interim, following a highly volatile movement, the Dogecoin token’s price noted a 0.61% drop in the past 24 hours and is currently resting at $0.1993. This high volatility, further accompanied by a downward trend, indicates significant uncertainty and selling pressure in the market. Moreover, this fall is further reinforced by a market cap dip of 0.60% and a 24-hour trading volume fall of 7.94%, anchoring DOGE’s bearish turn.

Also Read: US Treasury Seeks Stronger Crypto Controls for National Security