The market crash of the last 24 hours has caused a significant sell-off in Dogecoin (DOGE), the likes of which has not been recorded since at least May 2021. By According to data from CoinGlass, the broader market has generated $434.64 million in liquidations in the last 24 hours, with Dogecoin taking center stage.
The market crash of the last 24 hours has caused a significant sell-off in Dogecoin (DOGE), the likes of which has not been recorded since at least May 2021. By According to data from CoinGlass, the broader market has generated $434.64 million in liquidations in the last 24 hours, with Dogecoin taking center stage.
The Historic Dogecoin Liquidation
Since it is a meme coin, many traders generally limit their exposure to Dogecoin (DOGE) and its rivals. However, the 10.54% drop to $0.12 in its price has left many long traders in an impossible position.
Arman ShirinyanThe market shift caused total liquidations worth $60.86 million, of which $60.23 million was attributed solely to long traders. This amount is equivalent to a total of 507,166,666 DOGE settled so far. It is not yet known if this trend will continue; However, the recorded figures underline the overexposure of market participants to the meme currency.
Confidence in Dogecoin’s potential to regain lost valuations explains why many futures traders bet heavily on the coin. There has been intense whale accumulation of late, which initially helped cushion the sell-off and resulted in a 22% drop over the past month.
Bear fall is good
For overexposed traders, the bearish drop could have caused a major loss at this point, but when you take the bigger picture into account, this drop is a positive change for Dogecoin.
With the market in oversold mode, the DOGE Relative Strength Index has fallen to 28. After a period of decline, the bears in the market could be left with no additional DOGE to unload. At this point, Dogecoin could start to see a renewed “buy the dip” trend from a properly discounted price range.
Arman ShirinyanIf this scenario plays out, the coin could regain its lost valuation in the spot market and ultimately maintain its position as the most capitalized meme coin in the top 10 cryptocurrency list.
