Dogecoin trading volume has increased over the last 24 hours, with a liquidations also increased during this period. The acute escalate in these indicators is due to the significant decline in the price of Dogecoin, which has fallen by over 5% in the last 24 hours.

Dogecoin trading volume and liquidations are witnessing a significant escalate

CoinMarketCap data shows that Dogecoins trading volume has increased by over 57% in the last 24 hours, with over $6 billion traded during this period. Meanwhile, Coinglass data shows this Dogecoin liquidations exceeded $31 million, with $25 million and $5.8 million liquidated in long and compact positions, respectively.

Long positions suffered the most when Dogecoin’s price fell below the $0.4 range. This situation occurred after Jerome Powell’s speech, which painted a bearish picture of the most vital meme coin. As a cryptocurrency analyst Kevin Capital RevealedDogecoin’s technical indicators were already bearish, and the macroeconomic fundamentals only did more damage.

Powell suggested that the U.S Federal Reserve will probably hold off on interest rate cuts next year, which immediately sparked bearish sentiment among traders and led to a wave of selling. This contributed to a surge in trading volume as investors looked to get rid of their coins, given that the Fed’s hawkish stance is bearish on risky assets like Dogecoin.

However, Kevin Capital believes that investors are overreacting to Jerome Powell’s speech. The cryptocurrency analyst believes that Dogecoin will recover this price correction, stating that the dip will be bought. However, it is worth mentioning the correlation of Dogecoin with Bitcoin, as Kevin Capital has previously noted that DOGE’s next move will depend on BTC.

The Bitcoin price dropped below the psychological price level of $100,000 and looks bearish at the moment. Therefore, a Dogecoin price rebound is unlikely to occur until Bitcoin experiences a bullish reversal.

Increased volatility is not unusual

Cryptocurrency analyst Kenobi’s master also commented on the decline in Dogecoin’s price, stating that increased volatility at this stage of the bull market is not unusual. However, the analyst suggested that investors should avoid getting out of balance and instead hold on to their positions. This followed his claim that market makers who pump money into the market would prefer market participants to walk away with a 90% loss rather than a 10x gain.

Bitcoinist recently reported this Dogecoin sentiment turned negative again, indicating that DOGE holders may be willing to sell their coins even at a loss. Kevin Capital has previously stated that the Dogecoin bull market is not over yet, which suggests that despite price corrections, there is no reason to be bearish at the moment. He advised long-term holders to simply sit and wait for higher prices.

At the time of writing, Dogecoin is trading at around $0.36, down over 5% in the last 24 hours, according to data from CoinMarketCap.

Featured image created with Dall.E, chart from Tradingview.com