Dogecoin (DOGE) Long Traders Stunned as Liquidation Hit $11 Million

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As a seasoned researcher with years of experience in the volatile world of cryptocurrencies, I can confidently say that the recent market developments for Dogecoin (DOGE) have been nothing short of a rollercoaster ride. The severe liquidation experienced by long position traders is reminiscent of a classic case of “buy high, sell low” – a lesson that even the most seasoned traders learn the hard way in this market.

According to CoinGlass data, Dogecoin (DOGE) traders have faced substantial liquidation in the past 24 hours. Notably, long position holders of the popular meme coin suffered significant losses compared to short positions. This trend is similar to what we’ve seen with other prominent assets like Bitcoin (BTC) and Ethereum (ETH), which also reported liquidations during this period.

Imbalance in long and short positions

As a crypto investor, I observed that the total Dogecoin (DOGE) liquidation amounted to approximately $11.18 million. A significant portion of this figure, around $9.90 million, was attributed to long position traders. In contrast, the short position had a much smaller liquidation, amounting to just $1.28 million.

Due to recent market trends, traders holding long positions have faced an enormous discrepancy in liquidations, primarily stemming from the price movements over the past week. The cryptocurrency Dogecoin (DOGE) has been on a continuous decline as it struggles to achieve price equilibrium.

Earlier this month, the price of DOGE reached $0.4761 due to a market rally, sparking growing excitement about potential record highs. This surge in optimism encouraged some investors to buy DOGE, placing their bets on it.

Despite price changes affecting forecasts, the meme coin has found it tough to bounce back following its dip below $0.3780.

Currently, the value of DOGE is being exchanged at $0.3171, marking a 5.46% drop over the past day. The trading volume has also declined substantially by 21.48%, reaching approximately $2.59 billion. This decrease mirrors the liquidation figures reported in the Dogecoin market during the same period.

Uncertain price outlook

Simultaneously, according to U.Today’s report, large Dogecoin investors (whales) recently obtained approximately 270 million DOGE, worth around $89.64 million. Taking advantage of the recent price drop, these whales could have made their purchases as the coin stabilized. They seem to be optimistic about a potential bullish price increase in the future.

The future direction for DOGE’s prices is currently unclear, as it might not show a strongly bullish surge any time soon. When asked about potential price highs recently, Billy Markus, Dogecoin’s founder, didn’t provide clear insights. As a result, traders and investors must stay attentive to market developments and adapt to the volatile nature of the cryptocurrency market.

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2024-12-26 16:11