Dogecoin Price Slips, Fueling Unusual 25,341% Liquidation Imbalance
Dogecoin (DOGE) has witnessed a significant 8.55% decline in the last seven days and over 3% in the last 24 hours. This price slip has led to a massive liquidation imbalance for the king of meme coins amid broader crypto market capitulation.
Dogecoin short traders face massive liquidation wipeout
According to CoinGlass data, Dogecoin’s hourly liquidation heat map shows that futures short position traders have recorded a 25,341% liquidation imbalance against long position traders.
Notably, traders betting short on DOGE saw $106,770 wiped out as the value continued its downward slip.
CoinMarketCap data, as of press time, shows Dogecoin exchanging hands at $0.2007, which reflects a 3.37% decline in the last 24 hours. The meme coin dropped from a peak of $0.2082 to its current level amid a major pullback in trading volume. Volume has dipped by 13.07% to $1.51 billion as price outlook battles further dips.
This has triggered liquidation pressures on traders in the ecosystem. Looking at Dogecoin’s technical indicators, the $0.2040 to $0.2080 zone is a major liquidation zone for the meme coin. While retail traders are likely to face liquidations at this level, whales see it as a buying opportunity to increase their portfolio.
Meanwhile, long position traders also recorded a slight loss of $419 within the hour. This pushed total liquidation within the period to $107,190.
Whale accumulation signals potential reversal soon
Interestingly, in the market space, over one billion DOGE has flowed into whale wallets amid the price dip seen in the last 48 hours. The development, which is one of the largest whale accumulations in the last 30 days, suggests that these holders are maximizing any downward shift to increase their portfolio.
This is playing out among large holders and could signal an incoming reversal in the meme coin sector of the crypto market. Ecosystem whales do not just accumulate assets without anticipating significant shifts.
At the start of the trading week, Dogecoin recorded a spike in open interest as the price of DOGE reclaimed lost gains. Such bullish sentiment might eventually support the momentum to push it to higher levels.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
BTC, ETH, XRP, ZEC consolidate near highs as breakout levels approach
As chip stocks plummet, "cybersecurity software" surges across the board, CrowdStrike and Palo Alto Networks hit new highs
CrowdStrike surged 13.8% in a single day to a record high, while Palo Alto Networks soared 13%. The software ETF outperformed the semiconductor ETF by more than 10 percentage points in a single day, marking the largest gap in history. Analysts believe that regardless of the pace of AI development, security demand will only continue to rise. Capital is accelerating its rotation from computing hardware to security software, with segments such as identity management and data governance expected to benefit first.
Altman can afford to wait, but Masayoshi Son can't: OpenAI will not go public this year, exposing a $20 billion gap and a credit weakness for SoftBank.
OpenAI has postponed its public listing, putting its largest external shareholder, SoftBank, in a liquidity crisis. This week, SoftBank is conducting a roadshow in New York, seeking to issue $10-20 billion in bonds to repay the $40 billion bridge loan previously borrowed to increase its investment in OpenAI. According to Bloomberg estimates, SoftBank faces a funding gap of at least $20 billion, and the yield on its existing U.S. dollar bonds has already exceeded 8.5%, with pricing approaching junk status.
Meeting postponed, gold price drops rapidly
Crypto prices
More
