- Dogecoin confirmed death cross formations on its short-term charts, signaling bearish momentum amid intensified market liquidation pressures.
- Over $19.36 billion in crypto positions were liquidated within 24 hours, marking the largest single-day wipeout in digital asset history.
- The total crypto market cap dropped to $3.76 trillion as traders faced losses primarily from long positions totaling more than $16.85 billion.
Dogecoin recorded steep losses on Friday following a widespread sell-off across the cryptocurrency market. The downturn came as global digital assets faced their largest liquidation event in history, wiping out nearly $19.36 billion in open positions within 24 hours, according to data from CoinGlass. The scale of liquidations surpassed those seen during the 2022 FTX collapse and the 2020 market crash, highlighting the severity of the current market correction.
The latest liquidation wave primarily affected traders holding long positions, with over $16.85 billion liquidated from bullish bets. Despite the massive scale, the percentage drop across major cryptocurrencies was smaller than in previous crashes due to the market’s larger capitalization. The total crypto market cap fell to $3.76 trillion, signaling an extensive but proportionally moderated decline.
Death Cross Adds Pressure to Dogecoin
Dogecoin has emerged as one of the hardest-hit assets amid the downturn. The meme-inspired cryptocurrency formed a death cross on its two- and three-hour charts, where the 50-period moving average crossed below the 200-period moving average. The signal often indicates a continuation of bearish momentum. The formation coincided with Friday’s sharp correction, further unsettling traders already on edge after a week of volatility.
The token dropped from a high of $0.27 earlier in the week to a session low of $0.15 before slightly recovering to $0.196. The 24-hour decline stood at 23%, while the weekly loss reached 24%. The recent fall extended a downward trend that began on October 6, marking three consecutive sessions of losses. Market observers noted that the drop aligned with broader risk-off sentiment across digital assets.
Broader Uncertainty Weighs on Crypto Markets
Besides market-specific factors, broader economic uncertainty has intensified. The delayed release of key U.S. economic data due to the government shutdown added to volatility, leaving investors without crucial indicators that could guide near-term sentiment. Consequently, traders remain cautious as technical and macroeconomic pressures weigh on short-term outlooks for Dogecoin and the wider cryptocurrency market.
