The reduction in Dogecoin’s value coincided with the liquidation of more than $1.36 billion in leveraged positions in the entire cryptocurrency market in just one day. Dogecoin was one of the hardest-hit cryptocurrencies among those impacted by the market downturn.
According to reports, a trader made over $36 million by shorting Dogecoin, Ethereum, and other leading cryptocurrencies during the market correction. The coin also fell through a key support area near $0.18, which triggered automatic liquidations on the leading exchanges.
Market activity did not decrease with the price; instead, it increased as investors sought opportunities in the declining prices. The daily trading volume rose by more than 90%, a clear sign of retail traders’ growing interest in capitalizing on potential rebounds. However, analysts still warn that continued whale outflows could keep the pressure on the price if institutional demand is not restored.