Dogecoin Faces Major Drop: Is the Crypto’s Bull Run Over? Here’s What You Need to Know

• Dogecoin drops 5.79%, raising doubts about its bullish momentum.
• Whale activity plunges 95%, signaling reduced confidence in Dogecoin.
• Surge in Dogecoin futures volume contrasts with overall market decline.

Dogecoin (DOGE) has hit a major setback after experiencing a brief rally earlier this week. Following a strong start on Monday, where the cryptocurrency surged and reached a high of $0.127 on Tuesday, the momentum quickly faltered. By Wednesday, profit-taking took over as traders cashed out, sending Dogecoin’s price on a downward spiral. Despite the broader crypto market trading in the red, Dogecoin has continued its decline, leaving many wondering if its bull run is truly over.

Currently, Dogecoin is priced at $0.117, marking a significant 5.79% drop over the last 24 hours. The coin’s spot trading volume has also fallen by 13%, now resting at $1.16 billion. The overall metrics are flashing red, adding to concerns. In particular, whale activity has dropped drastically, with large transactions over $1 million falling by almost 95% in the past month. This is a clear signal that large investors are pulling back from Dogecoin.

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Futures Market Shows Divergence as Dogecoin’s Metrics Slide

In the futures market, however, a surprising shift occurred. Despite the overall downturn, Dogecoin’s futures volume surged by a staggering 10,782% in just 24 hours, reaching $200.98 million as per Coinglass data. This unexpected rise in futures trading contrasts sharply with the broader market’s downward trend, highlighting a potential divergence between spot and futures traders.

Looking ahead, technical support for Dogecoin is seen around the $0.11 and $0.10 levels. If the drop continues, these levels may act as key support zones. On the other hand, if a rebound occurs, resistance lies at $0.133, which aligns with the 50-day moving average. The next few days will be crucial in determining whether Dogecoin can regain its footing or if its bull run has truly come to an end.

The broader crypto market is also facing challenges, as a risk-off sentiment has taken hold. The Federal Reserve’s decision to maintain interest rates between 3.5%-3.75% has contributed to a cautious mood among investors. Over $509 million worth of crypto futures bets have been liquidated, signaling waning optimism across the market.

With Dogecoin’s metrics showing signs of struggle and its open interest dropping by 1.38%, the outlook for the meme coin is uncertain. The drop in whale activity and declining volumes point to a more bearish sentiment, leaving many traders questioning whether Dogecoin’s recent rally was merely a temporary spike. Only time will tell if the coin can recover or if this marks the end of its bull run.

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