The significant price drop of Dogecoin is a direct indicator of its current bearish momentum, which is likely to influence short-term investor sentiment negatively. The increased trading volume could be a result of investors selling off their holdings or attempting to buy the dip, both of which can contribute to short-term price volatility. The increase in circulating supply is generally a negative factor for price as it implies a greater availability of coins, potentially diluting value. However, the impact of this might be mitigated if the demand for Dogecoin increases.