Among the broader market downturnDogecoin coin meme has seen its price go back by about 10% in the last 24 hours. Meanwhile, data from Coinglass shows that more than $24 million worth of Dogecoin positions were liquidated in the downturn that followed in the past 24 hours.
Coinglass data shows the amount of liquid Dogecoin
according to data from CoinglassDogecoin liquidations have been among the most significant on the market in the past 24 hours, as leveraged positions have failed to withstand the rapid drop in prices. In particular, Dogecoin traders lost more than $24.37 million in liquidation in the past day, coming in behind only Ethereum, Bitcoin, and Solana, which have seen $136.9 million, $111.54 million, and $31.48 million, respectively, in liquidation.
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Most of the liquidations were long positions, as bullish traders were put off by the unexpected selling. As for DOGE, $21.42 million worth of long positions were liquidated, while approximately $2.95 million worth of short positions were liquidated.
These liquidations are accompanied by a strong decline in open interest in Dogecoin futures positions. according to Coinglass datathe open interest on Dogecoin is currently at 10.31 billion DOGE tokens, showing a decline of 12.37% in a 24-hour time frame. This corresponding drop in open interest reflects a sense of caution among Dogecoin investors as crypto bulls push through double-digit hits.
DOGE to kick back?
The dominance of long spread positions shows how bullish traders were blindsided by the sudden sell-off, which quickly erased much of the gains of the previous four days.
This sharp correction has halted the upward movement of Dogecoin, which he was ready be exchanged for 0.40 US dollars. Instead, Dogecoin bulls now face the challenge of defending key support at $0.35.
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Dogecoin's price action in the past seven days has been characterized by intense activity, with an increase from $0.31 on January 1 to $0.395 on January 7, representing a 27.4% increase in six days. However, there has been a 10% correction in the last 24 hours.
Despite this, Dogecoin continues to live up to this intensive trading activity, with data from Coinmarketcap showing a 90% increase in trading volume in the past 24 hours despite the liquidation. In addition, these types melt and shrink they are not unusual for Dogecoin, and many holders see them as an integral part of the market.
Looking forward, Dogecoin retaining the potential for strong reboundespecially if bulls can maintain support around the $0.35 level. A recovery in the price of Bitcoin above the necessary $100,000 mark could further provide the broader market movement needed to restart the Dogecoin rally.
At the time of writing, Dogecoin is trading at $0.3505.
Featured image created by Dall.E, chart from Tradingview.com
