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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.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team