DOGE's 24-hour trading volume shows more than a 70% increase, about 23% loss in 7 days of trading. With increasing Doge supply in exchanges, these data also increase the market risk more than before.
The overall cryptocurrency market has been under pressure after the bankruptcy of Silvergate Capital Corp. One week after Silvergate shut down its operations, another creditor bank, SVB Financial Group's share sale announcement, increased concerns about that financial sector, causing a more than 5.6% plunge in S&P 500 bank index.
Silicon Valley Bank, or SVB financial group, launched a $1.75 billion share sale on Wednesday to shore up its balance sheet. Increasing US bond yields caused this problem for SVP, as they needed to pay more percentages, so they tried to sell a $21 billion loss-making bond portfolio. This operation caused a $1.8 billion misbalance, so they decided to raise funds by selling the shares! This caused fear in the market and increased doubts about the recession. Will that be a soft landing or a sharp fall?
After what happened to Silvergate and now the SVB announcement, many cryptocurrencies have suffered; as a result, Doge was one of the most hit coins. This sale again suggests that whales are ready to rid themselves of their DOGE tokens.
From a technical point of view, it still maintains the critical support of $0.06. Breaching under 0.06 can open the doors for much lower levels. EMA crossing strategy and MACD histograms both remain bearish. Conversely, a recovery above 0.085 USD can change the trend, at least in the short term.
