The Dogecoin market has encountered severe volatility: over $1.85 million liquidated in 4 hours, with bulls suffering heavy losses.
The cryptocurrency market has recently experienced severe fluctuations, with the prices of mainstream coins returning to previous lows, and Dogecoin (DOGE) has become the focus.
According to the latest data from Coinglass, a large-scale liquidation wave erupted in the Dogecoin market within the past 4 hours, with total liquidations reaching as high as $1.85 million, among which the losses for long positions were particularly severe, amounting to $1.80 million, while the short liquidation amount was only $52,750, creating an astonishing 3,444% imbalance in liquidation ratio.
This sudden liquidation storm directly reflects the sharp change in market sentiment. Just the day before, Dogecoin's price briefly surged to $0.167, triggering strong expectations among investors for a sustained upward trend.
However, the market suddenly took a sharp turn, with the token price dropping 4% against the trend, currently standing at $0.150 at the time of writing. Analysts point out that a large number of traders established long positions near the price peak and were ultimately forced to liquidate as the price corrected, forming a vicious cycle of 'longs killing longs.'
The technical chart shows a key turning signal: the wedge consolidation is brewing a breakout opportunity.
Although the short-term trend appears weak, technical charts indicate that Dogecoin may be brewing an important turning opportunity. The current price is continuously oscillating above the key support level of $0.150, forming a typical descending wedge pattern. This technical structure has historically often indicated subsequent bullish breakouts.
It is worth noting that the RSI indicator for this meme coin has risen from the oversold region to the 40 level, and the MACD histogram also shows signs of flattening, suggesting that the downward momentum is weakening.
If Dogecoin can effectively break through the upper trendline of the wedge pattern, it may initiate a strong rebound, with a short-term target of $0.30 and a medium to long-term potential to challenge the range of $0.48 to $0.65. Compared to its historical high of $0.7316, the current 78% deep correction has instead created a potential high-yield opportunity.
However, traders need to remain vigilant, as the high volatility characteristic of the cryptocurrency market means that risks and opportunities coexist, especially during the current sensitive market sentiment period, where any directional breakout could trigger a chain reaction.
