Schlagwort: crypto business

• Dogecoin price is down 5% in 24 hours to hover near $0.22.
• The DOGE price movement is similar to that of most altcoins that are seeing profit-taking.
• Analysts are bullish on DOGE as whale accumulation continues.

Dogecoin (DOGE) has experienced a slight decline in the past 24 hours, dropping to lows of $0.22 amid a technical pattern breakdown.

The top memecoin’s price movement mirrors the broader cryptocurrency market’s price action in the past few days.

Bitcoin dipping to below $117k and Ethereum paring gains from near its all-time high buoyed bears.

While profit taking is driving current downside pressure, analysts are bullish on Dogecoin amid whale accumulation, spot ETF anticipation and long-term crypto trajectory.

Dogecoin price dips amid profit-taking

The latest decline in Dogecoin’s price has seen it breach a critical support level, driven by profit-taking and overall investor uncertainty.

DOGE reached highs of $0.24 as bulls attempted a breakout after an uptick from lows of $0.21 in the past week.

But as investors, wary of macroeconomic uncertainties, took profits, the top memecoin’s price dropped from above $0.24.

The move aligns with a rising wedge breakdown, which has accelerated the downturn to the support level around $0.22.

Bulls could face more pressure towards the psychological $0.20 area.

Despite the bearish price action, on-chain data reveals large investors are buying the dip.

Whale wallets, which have historically scooped DOGE amid price dips, have added to their portfolios.

Aggressive buying by whales has seen such wallets approach 100 billion DOGE in the past few weeks, the trend picking up momentum in the latest dip.

This is an outlook that could help DOGE price higher.

However, the memecoin is likely to hit the rocks if the Dogecoin network suffers a setback from a potential 51% attack, which could undermine network integrity if executed.

DOGE price prediction

The technical outlook for Dogecoin remains largely bullish, despite its notable dip in the past 24 hours.

However, losses have compounded to more than 12% in the past month, and the breakdown below $0.23, a critical threshold, has opened the door to further downside risks.

DOGE has, on multiple occasions, failed to convincingly break above the $0.24 mark.

With this supply wall helping to repeatedly cap Dogecoin’s upward potential, bears have tried to take advantage.

The breakdown of the rising wedge means the next target could be $0.20 or below.

Broader market conditions deteriorating will embolden bears.

Conversely, bullish signs that could help bulls include the recently formed golden cross and whale activity.

The technical indicators on the daily chart also show that DOGE is above the middle line of the Bollinger Bands, and the MACD is also holding onto the bullish picture.

Daily RSI is suggesting extended pressure, though.

If buyers reclaim the $0.23 level, a retest of $0.40 and $0.65 is possible. Analysts say a breakout to $1 in 2025 is still possible.

The post Dogecoin price falls to $0.22 after pattern breakdown appeared first on CoinJournal.

• Crypto leverage surges 27% to $53.1 billion, its highest since early 2022.
• A recent Bitcoin dip triggered a massive $1 billion liquidation of long bets.
• Stress points are emerging in DeFi lending and key dollar markets.

A ghost from bull markets past is haunting the cryptocurrency landscape: massive, unrestrained leverage.

A speculative fever is once again gripping traders, pushing borrowing to levels not seen since the last cycle’s peak.

But as a brutal billion-dollar liquidation event last Thursday proved, this double-edged sword can carve out devastating losses just as quickly as it creates gains.

The scale of this renewed appetite for risk is staggering. According to Galaxy Research’s Q2 State of Crypto Leverage report, the market for crypto-collateralized loans swelled by an incredible 27% last quarter, reaching a total of $53.1 billion.

Powered by record demand in DeFi and a return to risk-on sentiment, this represents the highest level of leverage in the system since the precarious heights of early 2022. This mountain of debt created the perfect backdrop for the violent shakeout that was to come.

The inevitable spark: a billion-dollar wipeout

When Bitcoin retreated from its high of $124,000 to as low as 118,000 last week, the over leveraged system snapped.

The price drop triggered a cascade of liquidations across crypto derivatives, wiping out more than 1 billion in long positions—the largest such event since early August.

While many analysts were quick to frame the purge as healthy profit-taking, it served as a stark and painful reminder of just how fragile the market becomes when speculative bets build this rapidly.

Cracks in the foundation

According to Galaxy’s analysts, this fragility is not just theoretical; the stress points are already visible and spreading. In July, a wave of withdrawals on the lending platform Aave caused ETH borrowing rates to spike above Ethereum’s staking yields.

This seemingly small shift broke the economics of the wildly popular “looping” trade, where investors use staked ETH as collateral to borrow more ETH to stake again.

The sudden unwinding of these positions triggered a frantic rush for the exits, overwhelming the network and sending the Ethereum Beacon Chain’s exit queue to a record-breaking 13 days.

The trouble doesn’t end there. Galaxy has also flagged a growing and worrying disconnect in the dollar markets. Since July, the borrowing costs for USDC in the over-the-counter (OTC) market have been climbing, even as rates on DeFi platforms remain flat.

This has widened the spread between the two to its highest point since late 2024, suggesting off-chain demand for dollars is critically outpacing on-chain liquidity. It is a dangerous mismatch that could dramatically amplify volatility if market conditions tighten.

Beneath the deceptive calm of a market waiting for Fed Chair Jerome Powell’s next move, a different story is unfolding.

While institutional demand and ETF inflows paint a bullish picture, the system’s plumbing is showing more and more points of stress.

Last Thursday’s billion-dollar flush was not an anomaly; it was a warning that the return of leverage is a fire that can warm the market or burn it to the ground.

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