3,401% Dogecoin Liquidation Imbalance Emerges Amid Consolidation
Emily HarrisMarket outlook shifting as Dogecoin liquidation trends take new bearish shift[...]
Dogecoin Traders Face Massive Liquidation as Meme Coin Plummets
The Dogecoin (DOGE) ecosystem has once again found itself in the spotlight, as a wave of liquidations has hit long-position traders. According to CoinGlass data, the total liquidation in the DOGE ecosystem stood at $22.33 million in the last 24 hours, with long-position traders bearing the brunt of the losses.
Investors who were betting on a bullish rally for Dogecoin suffered a significant setback as the price failed to climb as anticipated. The sharp drop in price caught these long-position traders off guard, leading to a sell-off and a substantial loss of $21.71 million.
In contrast, short-position traders recorded minimal losses, with only $625,930 wiped out. This suggests that the liquidation imbalance was heavily skewed toward long-position traders, who were caught off guard by the sudden price decline.
Interestingly, Dogecoin's liquidation patterns mirrored those of Bitcoin, but DOGE recorded a higher level of decline in the price metric. At the time of writing, Dogecoin was trading at $0.2049, representing an 8.3% drop in the last 24 hours, while Bitcoin's price had declined by 2.59% within the same time frame.
Despite the considerable drop in price and the significant liquidation event, the trading volume in the Dogecoin ecosystem has climbed by 53.33% to $2.16 billion. This suggests that DOGE bulls might be taking advantage of the declining price to accumulate the meme coin.
Looking ahead, Dogecoin's future trajectory remains uncertain. Amid broader market fluctuations, the meme coin might continue to lose its gains and breach several support levels. However, if the market records a boost, Dogecoin might stabilize and rebound, as the cryptocurrency tends to align with Bitcoin's price movements.
For Dogecoin to witness a sustained reversal, the ecosystem bulls must trigger a substantial buying volume that could translate to a price surge. As the market remains volatile, investors will need to closely monitor the developments in the Dogecoin ecosystem to make informed decisions.
