In an unexpected turn, the meme coin Dogecoin has retraced approximately 10% amid a broader market downturn over the past 24 hours. Coinglass data reveals that Dogecoin saw over $24 million in positions liquidated during this precipitous decline.
Coinglass highlights the extent of Dogecoin's market impact, noting its significant liquidations over the past day. As leveraged positions crumbled, Dogecoin traders lost substantial capital—over $24.37 million in liquidations. This positions Dogecoin just behind Ethereum, Bitcoin, and Solana, which saw liquidations of $136.9 million, $111.54 million, and $31.48 million, respectively.
Bullish traders bore the brunt, with long positions accounting for the bulk of losses. Specifically, $21.42 million in long positions and $2.95 million in short positions were liquidated.
Simultaneously, Dogecoin’s futures positions faced a sharp decline, as open interest plummeted 12.37% to 10.31 billion DOGE tokens. This reflects growing caution among investors navigating the volatile landscape.
The dominance of long position liquidations illustrates how unexpected the sell-off was for bullish traders. Their gains were quickly nullified. Dogecoin's momentum, previously poised to break the $0.40 mark, now sees a critical test at the $0.35 support line.
Recent price activity has been tumultuous. From $0.31 on January 1, Dogecoin surged to $0.395 by January 7—a 27.4% increase in six days. Yet, this has been marred by a 10% correction in the last day. Despite high liquidations, trading activity remains robust, with Coinmarketcap data showing a 90% surge in trading volume within the same period. Seasoned Dogecoin holders recognize the volatility as a hallmark of its market behavior.
Looking forward, the potential for Dogecoin’s rebound persists. Sustaining support around $0.35 is crucial for bulls. Any considerable recovery in Bitcoin, especially surpassing the $100,000 threshold, could bolster the entire market, reigniting Dogecoin’s rally. At present, Dogecoin trades at $0.3505.
