Discover the intricate dynamics affecting Dogecoin as it experiences a notable price retracement. Despite the broader market downturn, Dogecoin has specifically witnessed a significant 10% decrease in value over the past 24 hours. During this period, data from Coinglass reveals that Dogecoin positions amounting to over $24 million have been liquidated.
Insights from Coinglass: Dogecoin Liquidations Unraveled
Coinglass data provides a comprehensive view of the liquidations impacting Dogecoin in the past 24 hours. The coin has seen substantial liquidations, second only to major cryptocurrencies like Ethereum, Bitcoin, and Solana. Traders in leveraged positions faced challenges as the market unexpectedly declined, leading to losses exceeding $24.37 million in Dogecoin liquidations.
Long Positions Bear the Brunt
In this unexpected downturn, long positions formed the bulk of liquidations, highlighting the challenges faced by optimistic traders. Specifically, $21.42 million worth of long positions were liquidated, compared to $2.95 million in short positions. The overall market sentiment has shifted, with the open interest in Dogecoin futures showing a notable decline of 12.37%, settling at 10.31 billion DOGE tokens. This indicates a more cautious approach by investors amidst ongoing market volatility.
Potential for Dogecoin’s Recovery
The unexpected sell-off has disrupted Dogecoin’s upward trend, which was on the verge of surpassing the $0.40 threshold. Currently, Dogecoin supporters find themselves defending critical support at $0.35. Despite this setback, the intense trading activity persists, with Coinmarketcap reporting a remarkable 90% increase in trading volume in the past 24 hours, even amid liquidations.
Future Prospects and Market Resilience
Dogecoin’s recent price trajectory has been characterized by significant volatility. From a rise of 27.4% over six days, reaching $0.395 on January 7, to a swift 10% correction within 24 hours, Dogecoin’s journey has been tumultuous. However, such fluctuations are not unfamiliar to Dogecoin enthusiasts, who view these as inherent to the market’s nature.
Looking forward, Dogecoin holds the potential for a robust rebound, especially if the support around the $0.35 mark remains steadfast. A revival in Bitcoin’s price, surpassing the pivotal $100,000 mark, could inject the necessary momentum across the market, aiding Dogecoin’s resurgence.
As of the latest update, Dogecoin is trading at $0.3505, grappling with bearish pressures yet poised for possible recovery.
