Anomalous activity was detected while trading Dogecoin (DOGE). As it became known thanks to CoinGlass data, there was an abnormal imbalance in the trading of derivatives on the popular meme cryptocurrency over the past 24 hours. The total amount of liquidated Dogecoin positions was $13.88 million, which, given that the total figure for the cryptocurrency market of $402.63 million is small, still makes DOGE one of the largest assets by this parameter.
However, the problem is not the size of Dogecoin liquidations, but their nature, as 92.36% of them are long positions. If we try to formulate an even wilder figure, then the number of liquidated long positions is 1209% more than the total number of liquidated short positions. The reason, as always, is simple: latecomers or overleveraged traders fail to properly assess risk and, as a result, receive margin call notices from exchanges.
But what makes them do this? Over the past 24 hours, the Dogecoin price has been trading as if a major pump is about to occur, with a series of lower highs and higher lows. Considering the fact that Bitcoin was hitting its all-time high at the same time, and DOGE often follows the major cryptocurrency, the picture on the price chart looked promising.
However, a major sell-off early in today’s trading dampened hopes of a DOGE breakout and eliminated most of the long positions. Following this, we saw another rebound today with Dogecoin price up 1.5%. However, this was not successful and led to a more optimistic liquidation.
Bulls are punished, bears are celebrating – how long this trend will last remains an open question.
