Dogecoin (DOGE) Rockets 3,444% in 4-Hour Liquidation Imbalance

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The cryptocurrency market experienced a notable price correction over the past day, with leading cryptocurrencies retracing to previous levels.

This downturn significantly impacted Dogecoin's long position liquidations, according to recent data from Coinglass.

The data reveals that Dogecoin's total liquidations in the last 4 hours reached $1.85 million. Long-position traders of the popular meme coin experienced greater liquidations compared to short-position traders during this period.

DOGE Liquidation Favors Bears

This short-lived liquidation event resulted in a substantial liquidation imbalance of 3,444% favoring short traders.

According to the data, Dogecoin investors holding long positions suffered over $1.85 million in liquidation losses, while short positions accounted for only $52,750. Consequently, investors betting on a DOGE price increase incurred the majority of the losses, exceeding $1.80 million.

This indicates that investors anticipating a DOGE price surge were significantly impacted within a 4-hour window as the token's price declined against bullish expectations.

With DOGE long positions being wiped out at a rate 3,444% higher than short positions, this considerable liquidation imbalance has dampened confidence in DOGE's immediate price future, as the crypto market exhibits signs of heightened volatility.

DOGE Dips 4%

Following notable gains the previous day, when Dogecoin's price reached as high as $0.167, investor confidence remained relatively high, fueled by expectations of a sustained price rally.

Anticipating a continuation of the positive market trend, DOGE traders began opening long positions. This ultimately contributed to the imbalance, as the sudden price decline triggered the liquidation of long positions worth millions of dollars.

This shift in market sentiment led to a further decline in DOGE's price, showing a decrease of approximately 4% over the past day. As of press time, DOGE is trading at $0.158.

The notable decline in DOGE's price, with its 4-hour liquidation trend now favoring bears, has prompted traders to prepare for increased market turbulence as the new month begins on a bearish note. Read original article on U.Today