Despite the recent resurgence in the broader crypto market, Dogecoin, distinguished as the leading meme cryptocurrency by global market cap, experienced a decline in price. Let's delve into the reasons contributing to DOGE's shift towards a bearish direction.

During the recent recovery observed in the wider crypto market, Dogecoin stood out by showcasing a downward trajectory on April 9, deviating from the overall market trend. This decline in DOGE's price, currently below $0.2 as per CoinMarketCap data, can be attributed to various bearish on-chain indicators, indicating a potential downtrend for the meme coin. Let's explore the factors influencing DOGE's price slump.

Factors Influencing DOGE's Bearish Phase

Notably, Dogecoin's price drop below $0.2, amidst the bearish sentiment prevailing in the crypto market, can be linked to several negative factors such as a significant whale sell-off and on-chain data pointing towards a diminishing interest from investors. Let's analyze these factors in detail:

Derivatives Data Reflecting Pessimism

Insights from Coinglass revealed a decline in DOGE's derivatives volume by 5.04%, amounting to $3.97 billion, accompanied by a 1.44% drop in open interest, totaling $1.66 billion. This decrease in market activity, combined with the reduced OI-weighted funding rate of 0.0347%, indicates a diminished enthusiasm from investors towards the asset. As the price continues to retreat, these statistics align with an overall bearish mood prevalent in the crypto space.

Increase in Liquidations

Over the past 24 hours, a substantial number of traders, totaling 58,052, faced liquidations worth $195.92 million. Noteworthy liquidation events occurred on Binance -BTCUSDT, including a sizeable $5.28 million liquidation order. The Dogecoin liquidations amounted to $5.36 million, with long positions totaling $3.01 million and short positions at $2.34 million. These liquidation figures corroborate the prevailing bearish sentiment among traders and investors in correlation with DOGE's price decline.

Massive Dump of DOGE by a Whale

Data from Whale Alert showcased a significant transfer of 245 million DOGE to Robinhood, a U.S.-based exchange, orchestrated by an unknown address. This massive sell-off contributed to a negative sentiment surrounding DOGE, indicating a loss of confidence from a substantial holder, ultimately leading to increased token supply on exchanges. Despite reports of DOGE accumulations, this substantial dump has reinforced a bearish trend for Dogecoin within the market landscape, as highlighted earlier.

Dogecoin's Price Movement Amidst Decline

Following a period of heightened volatility, the price of Dogecoin registered a slight 0.61% decrease in the past 24 hours, currently stabilizing at $0.1993. This fluctuating trend, coupled with the downward trajectory, signifies increased uncertainty and selling pressure within the market. Furthermore, a 0.60% dip in market capitalization and a 7.94% decline in 24-hour trading volume further underline the bearish momentum surrounding DOGE.