Dogecoin (DOGE) is getting battered by the latest crypto market downturn. The meme-based cryptocurrency took a big hit this Thursday, dropping 14% in worth within the final 24 hours.
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Lengthy Positions Liquidated
In response to Coinglass, a crypto derivatives information platform, DOGE noticed a whopping $4.8 million in long positions liquidated. This signifies that buyers who guess on DOGE’s worth enhance acquired squeezed as the worth went down. Conversely, brief positions (bets on a worth lower) noticed minimal liquidations at simply $56,680.
This liquidation occasion coincides with a significant worth drop for DOGE, pushing it to a three-month low. The worth at present sits between $0.099 and $0.117, an important assist zone recognized by IntoTheBlock, a blockchain analytics agency. This zone represents a lot of wallets holding DOGE, and if it holds, the worth might probably rebound in direction of $0.142.
Dogecoin Not Alone, However A Chief In Liquidations
Whereas DOGE is feeling the warmth, it’s not the one cryptocurrency going through liquidation woes. The broader market correction resulted in over $321 million in complete liquidations throughout varied cryptocurrencies.
LIQUIDATION DATA IN 24 HOURS
TOTAL LIQUIDATIONS: UP TO $321.28M
TOP 5 COINS WITH HIGHEST LIQUIDATION:$BTC ~ $91.51M $ETH ~ $71.90M$SOL ~ $12.84M $DOGE ~ $5.39M $WLD ~ $5.23M #Blockchain #DeFi #liquidation pic.twitter.com/e6Dv5uQbkn
— PHOENIX – Crypto Information & Analytics (@pnxgrp) July 4, 2024
Curiously, DOGE takes the fourth spot for most vital liquidations, surpassing greater gamers like Solana (SOL). Even youthful meme cash like Dogwifhat (WIF) and Pepe (PEPE) haven’t been spared, experiencing vital liquidations as effectively.
Dogecoin, regardless of its latest struggles, stays a big participant within the crypto market. It operates on the Litecoin blockchain, a well-established expertise, and boasts of over $13 billion market capitalization.
A Double-Edged Sword: No Spot Market Stress, However Excessive Bitcoin Correlation
There’s a silver lining for DOGE. Not like the derivatives market, the spot market (the place precise shopping for and promoting of crypto occurs) doesn’t appear to be experiencing vital promoting stress. Information exhibits that DOGE purchase orders are literally outpacing promote orders by almost $1 million.
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Nevertheless, DOGE’s destiny appears intertwined with Bitcoin (BTC). They share a really excessive worth correlation, which means even minor sell-offs in Bitcoin can considerably impression DOGE’s worth. Current occasions like potential sell-offs from Mt. Gox, a defunct crypto trade, and the German government selling confiscated Bitcoin, might not directly have an effect on DOGE’s worth.
Will DOGE Rebound?
In the meantime, Dogecoin’s technical indicators are leaning bearish. The worth prediction of a 13% drop by August 4th aligns with the present sentiment. The Worry and Greed Index at 29 additional reinforces this bearish outlook.
Moreover, regardless of having a 3rd of the final 30 days in constructive territory, Dogecoin nonetheless skilled vital worth volatility, which might point out a continuation of the downtrend.
Featured picture from Unsplash, chart from TradingView
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