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

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

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

Go to Source
Author: Christian Encila

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