Popular dog-themed cryptocurrency Dogecoin DOGE/USD dumped hard Wednesday amid the broader market slump precipitated by the Federal Reserve's hawkish outlook.
What happened: The world's largest meme coin by market capitalization sank to a 5-week low of $0.34 during the evening before clawing back to $0.36.
DOGE lost over 6% in the last 24 hours, while its trading volume spiked 62% to $6.57 billion, making it one of the most transacted tokens on the day.
Well-known cryptocurrency analyst Kevin said that the move down was expected and it was "staring us all in the face."
Interestingly, a renowned early adopter of the cryptocurrency, Glauber Contessoto, aka the ‘Dogecoin Millionaire, ‘disclosed on X that he was also among the sellers.
See Also: MicroStrategy’s Aggressive Bitcoin Strategy Raises Eyebrows In Crypto Community
Why It Matters: DOGE's technical indicators painted a bearish outlook as of this writing, according to TradingView.
The Moving Average Convergence Divergence indicator, which compares two exponential moving averages of price, flashed a "Sell" signal. Additionally, most shorter moving averages hinted that the price could fall further.
That said, the Bull Bear Power indicator, used for measuring the strength of buyers and sellers in the market, showed a "Neutral" reading.
The derivatives market, on the other hand, sprang a surprise, as over 84% of the top trader accounts on Binance were long on DOGE as of this writing, according to Coinglass.
Price Action: At the time of writing, Dogecoin was exchanging hands at $0.3616, down 6.47% in the last 24 hours, according to data from Benzinga Pro.
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