Dogecoin price dropped near $0.20 as crypto liquidations topped $758 million. Traders reacted to the Fed’s pause and pressure from a stronger dollar.
The digital asset market saw a drastic drop this week, with top memecoin Dogecoin DOGE $0.19 24h volatility: 1.9% Market cap: $28.37 B Vol. 24h: $989.84 M among the worst hit.
A stronger dollar and unchanged interest rates pushed traders to exit risky positions. Notably, this development led to massive losses across top exchanges.
Dogecoin slips below key level amid stronger dollar
Dogecoin price fell by nearly 10% in one day, dropping to $0.201 as of July 31. It has now lost over 11% in the past week. The coin has been falling since reaching a high of $0.248 on July 28. Despite the recent drop, analysts like Javon Marks remain optimistic, suggesting Dogecoin has strong potential for significant gains.
However, it is important to mention that if the decline continues, this would be the fifth day in a row that Dogecoin closes lower. Importantly, the fall in price followed a strong move by the dollar, which has gained more than 3% over the past four weeks.
Per historical trends, as the dollar rises, traders tend to pull out of riskier assets like cryptocurrencies.
This week’s data also showed that the Federal Reserve kept interest rates at 4.25%. Many traders had expected a cut in September, but that now seems unlikely. The latest inflation data showed that the core PCE index rose by 2.8% compared to last year, the same rate as May.
These updates triggered an increase in sell orders in the crypto market. In total, over $758 million worth of leveraged positions were liquidated. Most of that came from long positions bets that prices would go up. According to CoinGlass, $706 million of the liquidations came from long traders who were caught off guard by the drop.
Per the update, Ethereum ETH $3 880 24h volatility: 1.5% Market cap: $468.30 B Vol. 24h: $17.71 B saw the biggest losses, with over $231.41 million in long and short liquidations, respectively. Bitcoin BTC $110 336 24h volatility: 1.3% Market cap: $2.20 T Vol. 24h: $32.33 B and Dogecoin followed closely with $182 million and $23.16 million in combined liquidations, respectively.
Traders watch dogecoin’s $0.20 support as losses mount
Dogecoin is now below its 200-day simple moving average of $0.212. It’s currently trading at $0.2054, down by 8% in the past 24 hours. Traders are closely watching the $0.20 mark.
If the coin falls below this point, the next support is expected around $0.194, near the 50-day Moving Average. If buyers return, they may try to push it back above $0.212.
Dogecoin Daily Price Chart | Source: TradingView
Nevertheless, Dogecoin whales bought 310 million DOGE in a day, sparking excitement as analysts predicted a rally of over 200%. This surge has fueled speculation about whether Dogecoin might reach $1 before year-end.
It is important to mention that the mood remains cautious as the stronger dollar continues to weigh on the crypto market, with Dogecoin under close watch.
Bitcoin hyper presale picks up as interest grows
Bitcoin Hyper is gaining attention as the first true Layer 2 built on Bitcoin. It aims to fix some of Bitcoin’s biggest issues, such as slow transaction times, high fees, and the lack of smart contract support.
More importantly, to solve this, it uses the Solana Virtual Machine, which allows for faster and more efficient processing.
HYPER is one of the leading cryptocurrency presales of the year and it supports staking, smooth transactions, and real-time movement of Bitcoin between layers. It offers a simpler and faster way to interact with the Bitcoin network.
Presale Details:
Funds Raised: $6.3M
Current Price: $0.012475
Token: HYPER
Total Supply: 21 billion
Presale Status: Live
Buyers can use ETH, USDT, BNB, or a card to make a deposit to participate in the presale. Since there are no private deals, everyone has the same opportunity and exchange listings are expected once the presale ends.
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