157% Liquidation Imbalance Hits Dogecoin in 24 Hours Amid Price Reset

Dogecoin Faces Volatility and Liquidation Imbalance

In the last 24 hours, the meme coin Dogecoin (DOGE) has experienced significant volatility, leading to a massive liquidation imbalance. This sudden price shift has resulted in substantial losses for traders betting on the continued growth of the asset.

According to CoinGlass data, the price movement within this timeframe wiped out $15.83 million worth of DOGE investments. Notably, long sellers suffered higher losses, with $13.72 million in investments forfeited during the liquidation imbalance. This setup disadvantaged long position traders, who experienced losses approximately six times greater than short sellers, who registered a loss of $2.11 million.

DOGE, which had been trading at $0.2312 with the potential for further upward movement mirroring Bitcoin's trajectory, suddenly plunged to a low of $0.2238. This unexpected development upset the projections made by long position traders.

At the time of writing, DOGE is trading at $0.2283, representing a 1.80% decline in the last 24 hours. However, this suggests that the meme coin is recovering from the $0.2238 level it slipped to earlier. Despite this potential, sellers remained aggressive and continued to dump the asset to avoid further losses, leading to a massive 38.45% plunge in trading volume to $1.99 billion within the period.

DOGE's attempt to reclaim the $0.23 level has faced resistance, and investors might have to wait longer to see a sustainable recovery. Interestingly, Bitcoin (BTC) recorded a similar liquidation imbalance, with long-position traders losing $115.57 million and short traders losing $37.90 million, resulting in a total liquidation of $153.47 million.

This signals that Dogecoin not only matched Bitcoin in growth but also mirrored its liquidation trend. With the widespread liquidation in the crypto space, the meme coin is hard-pressed to repeat its past performance. As May draws to a close, market watchers remain keen to see if Dogecoin has the resilience to deliver profits for investors.