Most markets are still recovering from the events of May 9th, which has left the crypto space unbelievably broken. Marked as having the highest daily loss for all cryptocurrencies, the bear has spared even the most popular and sought-after tokens, including the king of memecoins, Dogecoin.
Dogecoin is collapsing
Investors in Dogecoin, who lost 18.07%, are clearly discouraged, but are just Terra holders who are still suffering thanks to TerraUSD (UST).
DOGE, on the other hand, slipped to test the key support level of $0.1004, which coincides with an all-time high or 15-month low of February 2021.
In return, Dogecoin fell below the downtrend line, which has been receiving serious resistance since May 2021.
The altcoin broke through this in March and succeeded in maintaining momentum above it, although recent market conditions have pushed the coin down again, but if DOGE closes above it today, it is close enough to revert to support.
The widespread impact of the crash also liquidated short- and long-term contracts worth $14 million in the market.
Most of these liquidations came from long-term contracts worth nearly $13 million. This shows that investors have been eyeing the price increase for a while but have sadly failed to witness it due to continued bearish factors.
And perhaps the crash will serve as an opportunity for DOGE enthusiasts to dive into cash returns at a lower point once the recovery begins.
Literally, as you can see from the steady upward trend of the average coinage era, the sentiment of investors about accumulation has not changed much at present.
Also, the growing demand for Dogecoin over the past two months could be beneficial for those looking to enter the crypto market with a meme coin.
Currently, DOGE dominates the social space to some extent, with 4 out of 100 cryptocurrency-related mentions occurring.
It’s pointless to set a target as the market may have bottomed out going forward, but for a longer period, DOGE could entice existing and new investors if it returns to test $0.192 in support.