Dogecoin faces new hurdles as market liquidations surpass $300 million

Dogecoin (CRYPTO:DOGE) recently experienced a sharp decline, briefly rising to $0.11 on August 25 before falling back to $0.10. 

This drop aligns with a broader downturn in the cryptocurrency market, resulting in widespread losses. 

Over the past 24 hours, the cryptocurrency market saw liquidations totaling $341 million, with Dogecoin accounting for approximately $3.08 million of that amount, according to Coinglass. 

Liquidations occur when traders are unable to meet margin requirements, forcing exchanges to close positions, particularly those with high leverage. 

The recent surge in long liquidations suggests a growing risk that Dogecoin’s value could dip further. 

The impact of these liquidations has contributed to a bearish trend for Dogecoin. 

Increased trading volume during this price drop indicates stronger selling pressure, raising the possibility of DOGE falling below the $0.10 support level once again. 

A surge in volume typically confirms market interest, but when coupled with a declining price, it often signals a strengthening downtrend. 

Currently, Dogecoin faces resistance near the $0.10 mark. 

The daily chart shows DOGE trading below a descending triangle, a bearish pattern characterized by a downward-sloping trendline and flat support. 

If Dogecoin fails to break above this descending triangle, its price could fall further, potentially reaching $0.097 or even dropping to $0.080 in a more severe downturn. 

However, a break above the descending triangle could result in a sharp reversal, pushing the price back up towards $0.12. 

For now, Dogecoin remains in a challenging position, with market dynamics and technical indicators suggesting continued volatility ahead. 

Traders will need to watch closely to see if DOGE can find support or if the bearish trend will persist. 

At the time of reporting, the Dogecoin price was $0.1012.