Dogecoin (DOGE) plunges by 14% in a day due to $5 million liquidation pressure, leading to a three-month low. The broader crypto market also sees significant liquidations, with Bitcoin and Ethereum ranking highest.
Dogecoin Experiences Sharp Decline Amid $5 Million Liquidation
Dogecoin (DOGE) faced a significant setback as its value plunged by 14% within a 24-hour period on Thursday. The price drop brought DOGE to a three-month low, trading between $0.099 and $0.117, according to blockchain analytics firm IntoTheBlock.
The downturn was largely impacted by the liquidation of $4.8 million in long positions, which are trades that bet on the price of Dogecoin to increase. Data from Coinglass, a crypto derivatives platform, indicates that short positions, or bets on a price decrease, saw minimal liquidation at $56,680.
The broader cryptocurrency market also experienced substantial liquidations, with a total of $321 million across multiple assets. Bitcoin (BTC) and Ethereum (ETH) led the way with $91.51 million and $71.90 million in liquidations, respectively. Dogecoin ranked fourth with $5.39 million, surpassing Solana (SOL).
Despite this, the spot market for DOGE showed higher buy orders over sell orders by nearly $1 million, indicating no significant selling pressure. Nonetheless, Dogecoin’s fate remains closely tied to Bitcoin’s performance, due to their high price correlation.
In the short term, technical indicators predict bearish trends for DOGE, with a potential 13% further drop by August 4th. The Fear and Greed Index stands at 29, reflecting market sentiment.
Dogecoin continues to hold a market cap of over $13 billion, operating on the Litecoin blockchain technology. Currently, DOGE trades at approximately $0.09.
