Crypto Updates

$5M Liquidation Sparks 17% Price Plunge

$5M Liquidation Sparks 17% Price Plunge

Dogecoin (DOGE) is getting battered by the recent crypto market downturn. The meme-based cryptocurrency took a significant hit this Thursday, dropping 14% in value in the last 24 hours.

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DOGE down in the last day. Source: Coingecko

Long Positions Liquidated

According to Coinglass, a crypto derivatives data platform, DOGE saw a whopping $4.8 million in long positions liquidated. This signifies that investors who bet on DOGE’s price increase got squeezed as the price went down. Conversely, short positions (bets on a price decrease) saw minimal liquidations at just $56,680.

Source: Coinglass

This liquidation event coincides with a major price drop for DOGE, pushing it to a three-month low. The price currently sits between $0.099 and $0.117, a crucial support zone identified by IntoTheBlock, a blockchain analytics firm. This zone represents a large number of wallets holding DOGE, and if it holds, the price could potentially rebound towards $0.142.

Dogecoin Not Alone, But A Leader In Liquidations

While DOGE is feeling the heat, it’s not the only cryptocurrency facing liquidation woes. The broader market correction resulted in over $321 million in total liquidations across various cryptocurrencies.

Interestingly, DOGE takes the fourth spot for most significant liquidations, surpassing bigger players like Solana (SOL). Even younger meme coins like Dogwifhat (WIF) and Pepe (PEPE) haven’t been spared, experiencing significant liquidations as well.

Dogecoin, despite its recent struggles, remains a significant player in the crypto market. It operates on the Litecoin blockchain, a well-established technology, and boasts of over $13 billion market capitalization.

DOGE is currently trading at $0.09. Chart: TradingView

A Double-Edged Sword: No Spot Market Pressure, But High Bitcoin Correlation

There’s a silver lining for DOGE. Unlike the derivatives market, the spot market (where actual buying and selling of crypto happens) doesn’t seem to be experiencing significant selling pressure. Data shows that DOGE buy orders are actually outpacing sell orders by nearly $1 million.

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However, DOGE’s fate seems…

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