Key Highlights
- Dogecoin fell 8.3% to $0.088 as the wider crypto market faced selling pressure.
- DOGE open interest dropped 5.19% to $1.46 billion, while futures trading volume jumped 88.59% to $1.88 billion.
- DOGE is testing the $0.088-$0.09 support area, with the next resistance at $0.15 if the support holds.
Dogecoin (DOGE) fell sharply on Wednesday as selling pressure spread across the crypto market, pushing the meme coin down 8.3% from an intraday high above $0.096.
According to data from CoinGecko (on October 7 at 16:30 UTC), DOGE was trading at $0.088, bringing its market value to about $13.78 billion. The token recorded $1.25 billion in trading volume over the past 24 hours, while its circulating supply stood at 156.222 billion DOGE.
The drop was also visible in the derivatives market, where traders use futures contracts to take positions on the future price of an asset. According to data from CoinGlass (on October 7 at 16:30 UTC), the token’s open interest fell 5.19% to $1.46 billion. At the same time, futures trading volume jumped 88.59% to $1.88 billion, showing that trading activity increased even as the amount of open positions declined.
Bitcoin and other major tokens also face selling pressure
Meanwhile, there seems to be no major Dogecoin-specific development behind the fall. Instead, DOGE was caught in a wider market sell-off that also hit other major cryptocurrencies.
According to data from CoinGecko (on October 7 at 16:30 UTC), the crypto market was down 3.3% on the day, with the overall market valuation falling to $2.93 trillion. Bitcoin briefly fell below $84,000, while Ethereum lost around 4% and XRP dropped more than 3%.
Dogecoin’s decline was steeper than those of Bitcoin, Ethereum and XRP, highlighting the sharper moves that can occur when broader market selling intensifies.
Oil prices and rising yields add pressure to crypto
The wider pressure was also linked to moves outside crypto. According to data from TradingView (on October 7 at 16:30 UTC), Brent crude oil climbed above $100 per barrel before pulling back as renewed attacks on tankers raised concerns about possible disruptions to oil supplies in the Middle East.
At the same time, the 10-year U.S. Treasury yield moved above 5.3%, while the U.S. Dollar Index rose above 102. These moves can add pressure on assets such as cryptocurrencies.
Higher Treasury yields can make assets that pay interest more attractive to investors. A stronger U.S. dollar can also make financial conditions tighter, while higher oil prices can raise concerns about inflation. Together, these factors can make investors more cautious about assets that carry more risk.
Liquidations increase as traders bet on a recovery
The pressure on crypto was also accompanied by liquidations. According to data from CoinGlass (on October 7 at 16:30 UTC), about $12.52 million worth of positions were liquidated across the market over the past 24 hours. Of that amount, $11.11 million came from traders who were betting that prices would rise. That accounted for 88.71% of the total liquidations.
DOGE tests support after its latest golden cross
DOGE’s fall is notable because it came only a day after the token recorded its first daily golden cross in 14 months. The pattern formed when its 50-day moving average moved above its 200-day moving average.
Now, the focus has shifted to the $0.08 – $0.09 area. This zone has acted as an important support area for DOGE in the past. The 61.8% Fibonacci retracement level is near $0.0887, while the 100-day exponential moving average is around $0.1321.
A sustained hold above the support zone could leave $0.15 as the next resistance level to watch. Meanwhile, the Relative Strength Index (RSI) is currently at 48.13, indicating that the token is approaching neutral territory.
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