$751 Million Crypto Crash Puts Dogecoin (DOGE) $0.20 Level at Risk: Details

Crypto

$751 Million Crypto Crash Puts Dogecoin (DOGE) $0.20 Level at Risk: Details

Major cryptocurrencies experienced volatile trading at the start of August as the dollar strengthened. Dogecoin (DOGE) fell nearly 10%, marking one of its steepest daily declines.

Over $751 million in leveraged positions were liquidated on cryptocurrency markets, with longs accounting for the vast majority of the loss. According to CoinGlass data, longs, or bullish bets, contributed $706 million in total liquidations, as traders were caught off guard amid the rapid sell-off.

The DXY, which tracks the value of the dollar versus major fiat currencies, has risen by more than 3% in four weeks, pointing to potential financial tightening, which frequently pushes traders to cut their exposure to risky assets.

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According to data released Thursday, the Fed‘s preferred inflation indicator, the core PCE, increased 2.8% year-on-year, matching May’s rate and tying for the highest level since February. The personal consumption expenditures price index increased 2.6% year-on-year in June, up from 2.4% in May.

Dogecoin faces market drop

Earlier this week, the central bank kept interest rates constant at 4.25%, dashing traders hopes for more rate cuts in September.

At press time, DOGE was trading down 9.17% in the last 24 hours to $0.201 and down 11% weekly. Dogecoin has steadily declined since a high of $0.248 on July 28 and would mark its fifth day of dropping if today ends in losses. The current market sell-off has brought Dogecoin below the 200-day SMA at $0.212.

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Traders are watching whether DOGE can sustain its footing above the $0.20 level in the coming sessions. If this level is lost, Dogecoin may eye a retest of support at the 50-day SMA at $0.194.

On the other hand, bulls would attempt to push Dogecoin above the 200-day SMA at $0.212 if positive momentum returns to the market.