20,168,692 Dogecoin (DOGE) Liquidated in 24 Hours, What Happened?

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As a seasoned crypto investor with years of market navigation under my belt, I must admit that the recent 24-hour Dogecoin (DOGE) saga has been a rollercoaster ride. The bullish Bitcoin surge to $100,000 was expectedly exhilarating, but DOGE’s underperformance and subsequent liquidation of millions left me scratching my graying beard in confusion.

In the past day, there’s been a notable change within the Dogecoin (DOGE) community. Even amidst the surging bull market that propelled Bitcoin over $100,000, Dogecoin has experienced a steady decline. Importantly, Dogecoin traders have incurred approximately 20.17 million dollars in losses due to liquidations within the past 24 hours.

What triggered liquidation?

Based on information from CoinGlass, the total sum of liquidations during the specified time frame was approximately $8.12 million. This liquidation occurred when DOGE experienced a significant drop in the cryptocurrency market, decreasing from a previous peak of $0.4161 to $0.4018.

Various investors and speculators had wagered that DOGE would keep rising and potentially reach the $0.50 mark. Nevertheless, the unpredictable nature of the market and frequent price changes caused DOGE’s value to dip down to its present state.

Currently, the Dogecoin price stands at approximately $0.4069, representing a decrease of 0.82% over the past day. The trading volume has also decreased by 25.76%, reaching about $4.57 billion, indicating that investors may be adopting a more cautious approach due to Dogecoin’s performance not meeting expectations as predicted.

The selling off of Dogecoin resulted in a loss of approximately $6.39 million for traders who had long positions, as their belief in continued price rise fell apart. In contrast, traders with short positions endured around $1.73 million in losses due to this market movement.

In comparison to other meme coins such as PEPE, SHIB, and WIF, it’s worth noting that their combined liquidations were relatively low at approximately $2.92 million for PEPE, $1.13 million for SHIB, and $1.99 million for WIF. Interestingly, during this period, long traders experienced higher liquidation rates compared to short traders in all three coins.

DOGE underperforms despite Bitcoin’s rally

In simple terms, when Bitcoin’s price goes up, it tends to boost altcoins and meme coins too. Interestingly, even though Bitcoin saw a significant increase in the past day, Dogecoin (DOGE) has yet to break through its resistance level of $0.408 and continues to oscillate below it.

Dogecoin rather mirrored Bitcoin in a high liquidation pattern.

In simple terms, Bitcoin, the top digital currency currently experiencing a price surge, triggered liquidations worth approximately $59.95 million. This amount includes $42.73 million from traders holding long positions, while those with short positions lost around $17.21 million.

In a significant event across the altcoin market, Ethereum experienced the highest liquidation worth approximately $46.72 million. Out of this total, long position traders were responsible for $28.05 million in liquidations, while short traders accounted for about $18.67 million in liquidations.

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2024-12-13 16:31