Despite a broader market drop, the value of meme coin Dogecoin has decreased by approximately 10% over the last day. In addition, information from Coinglass indicates that more than $24 million worth of Dogecoin trading positions have been closed due to this decline within the past 24 hours.
Coinglass Data Highlights Extent Of Dogecoin Liquidations
Based on information from Coinglass, it appears that Dogecoin has experienced some of the largest market liquidations over the past 24 hours, as highly-leveraged positions were unable to withstand the sudden price decrease. In fact, traders dealing with Dogecoin suffered losses totaling approximately $24.37 million in liquidations during this timeframe. Only Ethereum, Bitcoin, and Solana have reported higher liquidation figures, with Ethereum experiencing $136.9 million, Bitcoin seeing $111.54 million, and Solana recording $31.48 million in liquidations respectively.
Long positions dominated the wave of closures since optimistic traders found themselves unprepared for the sudden market downturn. As far as Dogecoin is concerned, a staggering sum of approximately $21.42 million in long positions was closed, while around $2.95 million in short positions was also liquidated.
The process of liquidating these assets has been accompanied by a significant decrease in the number of active Dogecoin futures contracts, or open positions. As per data from Coinglass, there are now approximately 10.31 billion DOGE tokens in open interest, which represents a 12.37% drop over the past 24 hours. This decrease in open interest implies that Dogecoin investors may be showing signs of caution as the crypto market experiences harsh downturns.
DOGE To Bounce Back?
The prevalence of closed long positions highlights the fact that optimistic traders were taken aback by the sudden market drop, quickly wiping out much of the progress made over the past four days.
This sudden adjustment has temporarily halted Dogecoin’s progress towards surpassing the $0.40 price mark, causing a shift in focus for Dogecoin supporters. Now, they must work to maintain crucial support around the $0.35 level.
In the last seven days, Dogecoin’s price movement has been quite dynamic, with a steady climb from $0.31 on January 1 to $0.395 on January 7, marking a notable rise of approximately 27.4%. But, over the past day, there has been a 10% decrease in its value.
Regardless, Dogecoin’s trading activity remains high, as evidenced by a 90% jump in trading volume over the past day according to Coinmarketcap. Moreover, such liquidations and downturns are typical for Dogecoin, and many investors view them as an inherent aspect of this market.
Moving forward, there’s a high probability that Dogecoin will experience a significant surge, especially if buyers manage to uphold its value near the $0.35 point. A spike in Bitcoin’s price beyond the crucial $100,000 threshold could also fuel the broader market conditions favorable for Dogecoin’s continued upward trend.
At the time of writing, Dogecoin is trading at $0.3505.
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2025-01-08 19:34