Dogecoin Decimated: $5 Million Liquidation Sparks 14% Price Plunge
05 Luglio 2024 - 2:30PM
NEWSBTC
Dogecoin (DOGE) is getting battered by the recent crypto market
downturn. The meme-based cryptocurrency took a significant hit this
Thursday, dropping 14% in value in the last 24 hours. Related
Reading: Worldcoin Sentiment Improves, But March Highs Remain A
Distant Dream Long Positions Liquidated According to Coinglass, a
crypto derivatives data platform, DOGE saw a whopping $4.8 million
in long positions liquidated. This signifies that investors who bet
on DOGE’s price increase got squeezed as the price went down.
Conversely, short positions (bets on a price decrease) saw minimal
liquidations at just $56,680. This liquidation event coincides with
a major price drop for DOGE, pushing it to a three-month low. The
price currently sits between $0.099 and $0.117, a crucial support
zone identified by IntoTheBlock, a blockchain analytics firm. This
zone represents a large number of wallets holding DOGE, and if it
holds, the price could potentially rebound towards $0.142. Dogecoin
Not Alone, But A Leader In Liquidations While DOGE is feeling the
heat, it’s not the only cryptocurrency facing liquidation woes. The
broader market correction resulted in over $321 million in total
liquidations across various 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 News & Analytics
(@pnxgrp) July 4, 2024 Interestingly, DOGE takes the fourth spot
for most significant liquidations, surpassing bigger players like
Solana (SOL). Even younger meme coins like Dogwifhat (WIF) and Pepe
(PEPE) haven’t been spared, experiencing significant liquidations
as well. Dogecoin, despite its recent struggles, remains a
significant player in the crypto market. It operates on the
Litecoin blockchain, a well-established technology, and boasts of
over $13 billion market capitalization. A Double-Edged Sword: No
Spot Market Pressure, But High Bitcoin Correlation There’s a silver
lining for DOGE. Unlike the derivatives market, the spot market
(where actual buying and selling of crypto happens) doesn’t seem to
be experiencing significant selling pressure. Data shows that DOGE
buy orders are actually outpacing sell orders by nearly $1 million.
Related Reading: Polkadot Under Fire: 20% Price Drop Follows $87
Million Spending Outrage However, DOGE’s fate seems intertwined
with Bitcoin (BTC). They share a very high price correlation,
meaning even minor sell-offs in Bitcoin can significantly impact
DOGE’s price. Recent events like potential sell-offs from Mt. Gox,
a defunct crypto exchange, and the German government selling
confiscated Bitcoin, could indirectly affect DOGE’s price. Will
DOGE Rebound? Meanwhile, Dogecoin’s technical indicators are
leaning bearish. The price prediction of a 13% drop by August 4th
aligns with the current sentiment. The Fear and Greed Index at 29
further reinforces this bearish outlook. Additionally, despite
having a third of the last 30 days in positive territory, Dogecoin
still experienced significant price volatility, which could
indicate a continuation of the downtrend. Featured image from
Unsplash, chart from TradingView
Grafico Azioni Dogecoin (COIN:DOGEUSD)
Storico
Da Set 2024 a Ott 2024
Grafico Azioni Dogecoin (COIN:DOGEUSD)
Storico
Da Ott 2023 a Ott 2024