Dogecoin Price Drop Fuels Long Position Liquidations

Recent data from CoinGlass reveals that Dogecoin (DOGE) traders have faced significant liquidations in the last 24 hours. Long position traders, in particular, have incurred substantial losses, outpacing short traders. This follows a broader trend, as other major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) have also experienced liquidations.

Dogecoin’s total liquidation over the past 24 hours reached $11.18 million. Of this, long position traders accounted for the majority, with $9.90 million in liquidations. Meanwhile, short positions were significantly less impacted, totaling only $1.28 million in liquidations. This has created a notable imbalance, with long traders bearing the brunt of the losses.

Price Struggles Contribute to Liquidations

The liquidations stem from DOGE’s performance over the past week. The coin has struggled to maintain price stability, with fluctuations hindering its progress. Earlier in the month, DOGE peaked at $0.4761, causing optimism among traders who anticipated further price gains.

_{Source: CoinMarketCap}

However, after failing to sustain those highs, DOGE dropped below the $0.3780 mark, leading to losses for those holding long positions. As of now, DOGE is trading at $0.3171, marking a 5.46% decrease in the last 24 hours. Additionally, trading volume has dropped by 21.48% to $2.59 billion, which aligns with the recorded liquidations.

Whale Activity Amid Price Drop

Interestingly, Dogecoin whales have taken advantage of the recent price dip. Over the past 24 hours, they acquired 270 million DOGE, worth approximately $89.64 million. This move suggests that these large investors anticipate a possible rebound, betting on future price increases as DOGE consolidates.

The price outlook for Dogecoin remains uncertain. Despite recent bullish sentiment, the market dynamics are unpredictable.

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When asked about future price targets, Dogecoin’s creator Billy Markus offered no definitive answers. For now, traders and investors must remain cautious and watch how the market evolves.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.