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On January 8, 2025, Dogecoin (DOGE-USD) experienced a notable 7.86% decline, dropping to $0.3379. This correction follows a strong 27.4% surge from $0.31 to $0.395 in early January. The recent drop was accompanied by significant liquidations, with over $24.37 million lost in leveraged positions, mostly from long traders who were caught by the abrupt sell-off. Short positions only accounted for $2.95 million in liquidations.
The sudden price drop has led to a 12.37% decrease in open interest in Dogecoin futures, indicating cautious sentiment among investors. Despite the correction, Dogecoin continues to hold crucial support at $0.35, which is seen as a critical level for bulls to defend. A rebound is possible if this support holds, especially if Bitcoin regains momentum above $100,000, potentially boosting the broader market.
Dogecoin’s volatility remains a significant factor, but its market activity has been robust, with a 90% rise in trading volume in the past 24 hours. Traders will continue to watch for signs of recovery or further declines as the market stabilizes.
Disclaimer: This article is for informational purposes only and should not be considered financial advice.