Dogecoin Liquidations Cross $24 Million As Bulls Suffer Double-Digit Beat Down
among Broader market declinesthe price of meme coin Dogecoin has retraced about 10% in the past 24 hours. Meanwhile, data from Coinglass shows that more than $24 million worth of Dogecoin positions have been liquidated during the past 24 hours of declines.
Coinglass data highlights extent of Dogecoin liquidation
according to Data from CoinglassDogecoin’s liquidation was one of the most severe on the market in the past 24 hours as leveraged positions failed to withstand the rapid price decline. In particular, Dogecoin traders experienced liquidation losses of over $24.37 million in the past day, second only to Ethereum, Bitcoin, and Solana, which had liquidation losses of $136.9 million, $111.54 million, and $31.48 million respectively.
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Long positions accounted for the majority of liquidations as bullish traders were caught off guard by the unexpected sell-off. In the case of DOGE, long positions worth $21.42 million were liquidated, while short positions worth approximately $2.95 million were liquidated.
These liquidations were also accompanied by a significant drop in open interest in Dogecoin futures positions. according to coin glass dataDogecoin’s open interest currently stands at 10.31 billion DOGE tokens, down 12.37% in 24 hours. The corresponding drop in open interest suggests that Dogecoin investors are becoming cautious as the cryptocurrency bulls experience double-digit losses.
Is DOGE going to rebound?
The dominance of liquidations of long positions suggests bullish traders were caught off guard by the sudden sell-off, which quickly wiped out many of the gains from the previous four days.
This sharp adjustment interrupted Dogecoin’s upward momentum. Already ready There was a break above the $0.40 price level. Instead, Dogecoin bulls now face the challenge of defending the key support level at $0.35.
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Dogecoin’s price action over the past seven days has been characterized by activity, surging from $0.31 on January 1 to $0.395 on January 7, a gain of 27.4% in six days. However, there has been a 10% pullback in the past 24 hours.
Still, Dogecoin holds on to this Intense trading activity, Data from Coinmarketcap shows that despite the liquidations, trading volume increased by 90% in the past 24 hours. In addition, this type of liquidation and decline This is not unusual for Dogecoin, which many holders have come to view as an important part of the market.
Looking to the future, Dogecoin Still retains strong rebound potentialespecially if the bulls can maintain support near $0.35. A recovery in Bitcoin prices above the key $100,000 mark could further provide broader market momentum for Dogecoin to resume its rally.
As of this writing, Dogecoin is trading at $0.3505.
Featured image created using Dall.E, chart from Tradingview.com
