Most of the market is still recovering from the events of 9 May, which left the crypto space broken beyond belief. Marking the highest single-day losses for every cryptocurrency, the bears did not spare even the most popular/in-demand tokens, including the king of meme coins, Dogecoin.
Dogecoin breaks down
Losing 18.07%, Dogecoin investors certainly were dejected but no more than Terra holders who are still suffering thanks to TerraUSD’s (UST) which has left the stablecoin to trade at $0.47, even falling to $0.26 at one point in the day.
DOGE, on the other hand, slipped to test its critical support of $0.1004, which coincides with February 2021 all-time high or 15-month lowest.
Dogecoin price action | Source: TradingView – AMBCrypto
In return, Dogecoin fell under the downtrend line that has been a severe resistance since May 2021.
The altcoin was successful in breaching it back in March and sustaining a momentum above it, but the recent market conditions brought the coin back down under it but just close enough to flip it back into the support provided DOGE closes above it today.
The broader impact of the crash also led to the liquidations of $14 million worth of long and short contracts in the market.
Dogecoin liquidations | Source: CoinGlass
Most of these liquidations were from long contracts, which amounted to almost $13 million. This shows that investors have been looking for a price rise for a while now but sadly have not been able to witness it due to the persisting bearish factors.
And, maybe this crash would act as an opportunity for DOGE enthusiasts to jump in at a low point to cash profits once recovery begins.
As it is, the investors’ sentiment toward accumulation hasn’t really changed at the moment, as is visible with the steady incline of the Mean Coin Age.
Dogecoin mean coin age | Source: Santiment – AMBCrypto
Plus, Dogecoin’s rising demand over the last two months might make it favorable for people looking to enter the crypto market with a meme coin.
Currently, DOGE is somewhat dominating the social space accruing four mentions out of every 100 crypto-related mentions.
Dogecoin’s dominance on social platforms | Source: Santiment – AMBCrypto
Going forward, setting any target is pointless since the market has probably bottomed, but in the longer timeframe, DOGE returning to test $0.192 as support could charm its older and newer investors.
