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Dogecoin traders faced fresh pressure amid the ongoing market drop, with 17,833,333 DOGE in long positions liquidated as selling returned to the market. $342 million was liquidated across the crypto market in the last 24 hours, with Dogecoin having its share.
According to CoinGlass data, Dogecoin saw a total of $2.45 million in liquidations over the last 24 hours, with longs accounting for $1.391 million (about 17,833,333 DOGE) of this total, while shorts saw $1.05 million in liquidations.
Long liquidations occur when traders betting on higher prices are forced to close their positions, typically after losses push their margin balances below required levels. When large numbers of leveraged positions are liquidated in a short period, the resulting selling can intensify downward price pressure.
Along these lines, Dogecoin was down nearly 3% in the last 24 hours to $0.078 as the market fell while investors digested the Federal Reserve's decision to hold interest rates steady at its October meeting.
Dogecoin rose for three consecutive days earlier in the week to hit $0.08, but profit-taking in the markets caused its price to retreat.
What's next?
The Personal Consumption Expenditures Index—the Fed's preferred inflation gauge—was released Thursday, with few cryptocurrencies recouping losses in the wake of the report.
The personal consumption expenditures price index increased a seasonally adjusted 0.5% for the month, putting the annual inflation rate at 3.6% as the pace of price increases stepped up in September, keeping inflation well above the Federal Reserve's target.
While the Fed held interest rates on Wednesday, as expected, two officials dissented in favor of a quarter-point increase and Chair Kevin Warsh declined to signal what might come in December. However, expectations for a 25 basis point hike at the central bank's next meeting on Dec. 9 remain.
If Dogecoin rebounds, the next key resistance levels for Dogecoin are $0.083 and $0.087, while support is envisaged first at $0.074 and $0.069 in the event of a price drop.