Dogecoin (DOGE) has experienced a mild liquidation in the last 24 hours, as revealed by CoinGlass data. Notably, long-position traders of the meme coin suffered more liquidations than losses recorded by short position traders.
Dogecoin long traders face $6.91 million in liquidations
Dogecoin investors lost over 33,412,604 DOGE valued at $8.44 million. The figures show a liquidation imbalance, with long-position traders registering $6.91 million. Investors who bet short on DOGE lost a total of $1.53 million.
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While very glaring with DOGE, this imbalance also affected other notable assets like Bitcoin, Ethereum and Solana.
The liquidation imbalance experienced by Dogecoin investors in the extended position flows from its price performance in the last seven days. Earlier, DOGE’s price trajectory looked like it could stabilize above the $0.29 level, raising anticipation of a bullish run.
However, DOGE soon slipped from $0.2918 and plunged as low as $0.2396. This unexpected decline in price has affected traders who have been betting long on DOGE.
Analysts highlight this development as signaling the unpredictability of the cryptocurrency sector, which can easily succumb to price volatility.
As of this writing, the DOGE price was changing hands at $0.251, representing a 1.52% decline in the past 24 hours.
However, investors remain optimistic of a price rebound, as trading volume has surged by 54.26% to $1.48 billion. This increased interest among investors could support DOGE in reaching new levels.
Could renewed investor interest fuel rebound?
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As U.Today reported, when DOGE’s trading volume skyrocketed on Feb. 7, there was a corresponding uptick in price. On that occasion, traders flocked to invest in the meme coin as the market recovered in the crypto space.
Experts expect the meme coin to recover soon, as there has been a surge in Open Interest within the last 48 hours. Data shows that over $2.2 billion has been committed to a Dogecoin boom, a development that could support positive price action.
Source: https://u.today/33412604-dogecoin-liquidation-imbalance-stuns-doge-long-traders