Key Insights:
- Dogecoin price drops 3% in 24 hours, facing pressure after the LIBRA meme coin rug pull incident.
- Analyst Ali Martinez predicts Dogecoin could drop 40% to $0.15 due to a death cross pattern.
- Dogecoin futures open interest dropped 5.27%, while $3.57M in liquidations were recorded in the last 24 hours
Dogecoin price experienced substantial pressure over the last 24 hours as it dropped substantially. Market concerns intensified because of the LIBRA meme coin rug pull incident that affected the entire meme coin market.
Dogecoin price trajectory faces significant uncertainty because analysts predict it will experience an imminent crash.
Dogecoin Price Faces Pressure After LIBRA Meme Coin Incident
Notably, the Dogecoin price recorded a 3% decline in the past 24 hours as the entire meme coin market experienced declining prices.
The LIBRA meme coin launch by Argentine President Javier Milei triggered the market downturn that followed a major pump-and-dump scheme.
Many investors now express worry about meme coin stability because of this rug pull affecting Dogecoin alongside other major meme tokens in the market.
As the market reacts to this incident, traders and investors are looking closely at Dogecoin technical indicators, including its market value and long-term trend.
The market uncertainty has increased because investors worry about potential additional price drops in the coming days.
Death Cross Pattern Suggests Potential for Further Decline
More so, the dogecoin death cross serves as a vital technical indicator that has drawn increasing attention from both analysts and traders.
When short-term moving averages cross beneath longer-term averages investors may expect bearish market trends to develop.
The MVRV ratio valuation for Dogecoin price has fallen beneath its 200-day moving average to establish a death cross pattern.
Analyst Ali Martinez points out the historical significance behind the Dogecoin death cross pattern as it affects price trends.
Previous price drops following this pattern triggered major value reductions that drove Dogecoin down by 26% and 44% in the past. According to Martinez’s assessment, there is a possibility that the Dogecoin price could drop to $0.15 if market trends persist.
Dogecoin Futures Open Interest and Liquidations
Meanwhile, the bearish technical indicators are supported by Dogecoin futures market open interest falling in numbers. The open interest in Dogecoin futures markets suffered a 5.27% decline in the past 24 hours amounting to $2.41 Billion.
The price downturn shows that investors choose to close or minimize their market positions because they believe prices will drop even further.
Moreover, liquidations during the last 24 hours surged to $3.57 Million according to Coinglass data. Long positions totaling $3.1 Million represented a large portion of the total $3.57 Million of liquidations.
The traders who bet on price rises have been compelled to sell their assets. The recent increase in liquidations points to negative market sentiment toward Dogecoin.
At press time, Dogecoin price is trading at $0.2603 after experiencing downward pressure. The price fluctuated between $0.2706 and $0.2600 over the past 24 hours.
The coin fell to hold above key support levels, suggesting potential further declines if the trend persists.
