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Among the a decline in broader marketsmeme coin Dogecoin has seen its price bounce back nearly 10% in the past 24 hours. At the same time, data from Coinglass shows that Dogecoin positions of more than $24 million have been liquidated in the following reduction in the last 24 hours.
Coinglass Data Highlights Average Dogecoin Liquidations
In accordance with data from CoinglassDogecoin’s close has been among the most significant in the market over the past 24 hours, as limited positions have failed to withstand the rapid price drop. In particular, Dogecoin traders lost more than $24.37 million in liquidation in the previous day, coming behind only Ethereum, Bitcoin, and Solana, which saw $136.9 million, $111.54 million, and $31.48 million, respectively, in liquidation.
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Long positions accounted for most of the selling, as bullish sellers were caught off guard by the unexpected selloff. In the case of DOGE, $21.42 million worth of long positions were liquidated, while $2.95 million worth of short positions were liquidated.
This liquidation has been accompanied by a sharp decline in open interest in Dogecoin futures positions. In accordance with Coinglass dataOpen interest in Dogecoin is currently 10.31 billion DOGE tokens, showing a decrease of 12.37% in the 24-hour period. This concomitant drop in open interest raises a sense of caution among Dogecoin investors as the crypto bulls push for double-digit hits.
DOGE To Go Back?
The dominance of liquidated long positions shows how bullish sellers have locked in a sudden sell-off, which has quickly erased most of the gains over the past four days.
This sharp correction interrupted the upward momentum of Dogecoin, which he has been preparing to break above the $0.40 price level. Instead, Dogecoin bulls are now facing the challenge of protecting the important support at $0.35.
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Dogecoin’s price action over the past seven days has been characterized by heavy activity, rising from $0.31 on January 1 to $0.395 on January 7, representing a 27.4% increase in six days. However, the last 24 hours have been filled with a 10% correction.
Nevertheless, Dogecoin continues to hold on to this big business, with data from Coinmarketcap showing a 90% increase in trading volume in the last 24 hours despite the shutdown. In addition, these species elimination and decline they are not unusual for Dogecoin, and many owners see it as part and parcel of the market.
Look forward, Dogecoin retains strong rebinding potentialespecially if the bulls can maintain support around the $0.35 level. A Bitcoin price recovery above the key $100,000 mark could provide the broader market momentum needed to continue Dogecoin’s rally.
At the time of writing, Dogecoin is trading at $0.3505.
The featured image was created with Dall.E, a chart from Tradingview.com