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Dogecoin (DOGE) long position traders have again been stunned as a 514% liquidation hit the meme coin’s market space. Notably, after DOGE flashed rebound signals, some traders bet on sustained momentum, but volatility turned the tide.
Dogecoin longs take hit as $6.33 million wiped out
According to CoinGlass data, in the last 24 hours, Dogecoin’s total liquidation stood at $7.36 million. Out of this amount, long position traders saw $6.33 million wiped out as price action shifted, resulting in losses. These investors were betting on a sustained recovery as prices lifted, but the volatility of the crypto space prevented it from materializing.
Short position traders recorded about one-sixth of the losses suffered by those betting long on DOGE. A total of $1.03 million was liquidated from short position traders, signaling less exposure on the market.
As of press time, Dogecoin remains in the red zone, declining by 2.74% to trade at $0.1711 in the last 24 hours, according to CoinMarketCap.
Nonetheless, trading volume has witnessed an uptick of 28.23% to $1.25 billion within the same time frame. This suggests that investors use the price dip to accumulate more of the meme coin at a reduced rate.
It remains unclear if DOGE whales are behind the current spike in volume. However, investors hope that the sustained increase could trigger a reversal in the price outlook. In the past week, Dogecoin whales were active, transacting over $23 billion worth of DOGE within 24 hours.
DOGE loses market cap ground to Tron (TRX)
There are lingering concerns in the Dogecoin community as the meme coin faces pressure on the broader crypto market. As U.Today predicted, Dogecoin recently lost the eighth position ranking per market capitalization to Tron (TRX).
Dogecoin was ahead of Tron by about $580 million, but slow price growth caused it to lose against Tron. The only consolation amid the current market setup is that Bitcoin is also experiencing a price decline. Dogecoin investors can only hope that if the leading digital currency rebounds, DOGE might mirror it.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team