Dogecoin Price Slips, Fueling Unusual 25,341% Liquidation Imbalance

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Dogecoin (DOGE) has experienced a notable downturn, with an 8.55% decrease over the past week and a further 3% decline in the last 24 hours. This price retraction has resulted in a significant liquidation imbalance for the leading meme coin, occurring amidst a broader market correction across the cryptocurrency landscape.

Dogecoin Short Traders Face Liquidation Pressure

Data from CoinGlass reveals a striking imbalance in Dogecoin's hourly liquidation heat map. Futures traders who took short positions have seen a substantial 25,341% liquidation imbalance compared to those holding long positions.

Specifically, traders betting against DOGE saw $106,770 liquidated as the price continued its descent.

As of press time, CoinMarketCap data indicates Dogecoin is trading at $0.2007, reflecting a 3.37% decrease in the last 24 hours. The meme coin has fallen from a high of $0.2082 to its current level, accompanied by a decrease in trading volume. Volume has decreased by 13.07% to $1.51 billion as the price outlook struggles against further dips.

This situation has created liquidation pressures for traders within the Dogecoin ecosystem. Technical indicators suggest that the $0.2040 to $0.2080 range represents a critical liquidation zone. While retail traders may face liquidations at these levels, larger holders, or "whales," might view this as an opportunity to expand their portfolios.

Concurrently, traders holding long positions also experienced a minor loss of $419 within the hour, bringing the total liquidation amount for the period to $107,190.

Whale Accumulation Suggests Potential Reversal

Interestingly, despite the price dip of the past 48 hours, over one billion DOGE have been moved into whale-controlled wallets. This accumulation, representing one of the largest whale activities in the last 30 days, indicates that these large holders are capitalizing on the price decline to increase their holdings.

This behavior among significant stakeholders could signal an impending reversal within the meme coin sector of the cryptocurrency market. Ecosystem whales typically do not accumulate assets on this scale without anticipating future market shifts.

Earlier in the trading week, Dogecoin experienced a surge in open interest as the price recovered some lost ground. This positive sentiment could eventually provide the necessary momentum to propel it to higher price levels. Read original article on U.Today