Dogecoin (DOGE) has suffered severe liquidation as price volatility has hit the ecosystem in the last hour. This has triggered a liquidation imbalance of 200%, as long position traders saw their positions wiped out.
Liquidation spike follows failed Dogecoin recovery rally
Per CoinGlass data, traders betting long in the Dogecoin futures market have lost $123,000 in the last hour, as the price change triggered this development. Notably, traders betting on DOGE to rise after it flashed a recovery have also lost.
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The bullish stance taken by these traders suggests that the price would continue to climb, but it took a turn as market sentiment shifted, plunging DOGE from $0.232 to $0.2266.
This suggests bearish short-term momentum, which has affected trading volume as market participants pulled back.
As of press time, trading volume has declined by 0.9% to $1.32 billion. Meanwhile, the price has recovered slightly, and DOGE now exchanges at $0.2268, representing a 1.06% increase in the last 24 hours.
Some consider the price fluctuation of Dogecoin within the $0.2200 and $0.2300 zone as a consolidation phase for the asset. If the meme coin can stabilize above $0.2255, Dogecoin could record a breakout once the consolidation phase ends.
$0.27 resistance remains Dogecoin’s bullish gateway
In the broader crypto space, Bitcoin has registered the same liquidation imbalance, with long traders also seeing their positions wiped out. The relative correlation between the two assets shows it is a general trend.
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Dogecoin flashed a death cross earlier, asreported by U.Today, which predicted that unless trading volume or other growth metrics recorded a spike, it might not reverse. However, Dogecoin bulls have not supported the ecosystem enough to trigger a sustained rebound.
Market participants, however, remain hopeful that DOGE might overcome itsresistance levels and hit the $0.27 price mark. This level remains critical to Dogecoin's bullish rally in the coming days.
