Dogecoin Crushed by Interest Rate Hopes and Inflation Fears

Dogecoin (DOGE) experienced a significant market downturn, with a 2,691% liquidation imbalance after a sharp sell-off forced long traders to close their leveraged positions. The cryptocurrency dropped by 7.30% in the last 24 hours, trading at $0.083 amid an ongoing broader crypto market sell-off.

Rising expectations of a Federal Reserve interest rate hike and renewed inflation concerns weighed on the bulls, leading to the sharp price drop. According to CoinGlass data, about $8.91 million of leveraged DOGE positions were liquidated over the past 24 hours, with $8.59 million coming from long positions and $319,190 from shorts.

The percentage imbalance between long and short positions stood at 2,691.19%. Dogecoin's drop caught traders betting on a price increase off guard, pulling the cryptocurrency below its daily moving average (MA) of 200 at $0.088 for four straight days.