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Dog-themed cryptocurrency Dogecoin (DOGE) fell on Friday amid a broader market sell-off as crypto traders weighed mixed macroeconomic data. This reversed what had been a bullish trend for crypto markets in recent weeks, accelerating a bout of profit-taking that began earlier this week.
DOGE dipped nearly 8% in 24 hours, indicating a risk-off shift among crypto traders. The drop coincides with a 150% increase in trade volume over the last 24 hours. According to CoinMarketCap data, 11.53 billion Dogecoin, or $2,028,469,753, were traded in 24 hours, representing a 155% rise.
The increase in trading volume could indicate institutional distribution rather than retail fear, as traders seek to profit from DOGE's volatility.
At press time, Dogecoin was trading at $0.176, with a weekly loss of 14%. As the market remains volatile, resistance is currently at $0.190, with support emerging between $0.169 and $0.170.
$979 million liquidations hit crypto market
Fresh uncertainty in global markets sent major cryptocurrencies tumbling in the early Friday session, wiping out nearly $1 billion in leveraged bets.
According to CoinGlass data, traders lost $979 million in liquidations, with $870 million coming from long positions, indicating a wipeout of bullish positions; shorts, on the other hand, contributed $110 million.
The liquidations hit major cryptocurrencies, with Bitcoin leading the pack with $345 million liquidated in the past 24 hours, according to CoinGlass data. Dogecoin saw $27 million liquidated as altcoin traders were caught off guard by the unexpected drop.
A cascade of liquidations suggests market extremes, implying that a price reversal might be on the horizon as market sentiment swings in one direction.
Vladislav Sopov
U.Today Editorial Team