Dogecoin Price Dips, Triggering Unusual 25,341% Liquidation Imbalance
Dogecoin (DOGE), the leading meme coin, has seen a sharp downturn, dropping 8.55% over the past week and 3.37% in the last 24 hours. This recent decline has ignited a massive liquidation imbalance, disproportionately impacting short traders in the futures market.
Short Sellers Hit Hard by Liquidation Surge
Data from CoinGlass reveals an astonishing 25,341% liquidation imbalance favoring long positions over shorts. In just one hour, DOGE short traders faced liquidations totaling $106,770, underscoring the market’s volatility as prices continued to slide.
At the time of writing, Dogecoin is trading at $0.2007, down from a recent high of $0.2082. The drop coincides with a broader market pullback and a 13.07% decrease in trading volume, now sitting at $1.51 billion, according to CoinMarketCap.
Key Liquidation Zone and Market Sentiment
Technical indicators show a critical liquidation zone between $0.2040 and $0.2080—a range where retail traders are often forced out due to margin calls, while institutional investors and whales see strategic entry points.
Despite short traders bearing the brunt, long traders weren’t entirely spared, posting a modest $419 in liquidations during the same timeframe. Total liquidations during the hour reached $107,190.
Whale Accumulation Hints at Possible Reversal
In a significant development, over 1 billion DOGE has moved into whale wallets over the past 48 hours. This marks one of the largest accumulations in the past month, suggesting that large holders are buying the dip in anticipation of a market reversal.
This surge in whale activity comes on the heels of increased open interest earlier in the week, which saw DOGE briefly regain upward momentum. Such positioning by major holders may signal renewed bullish sentiment and the potential for a rebound in the meme coin sector.
As Dogecoin navigates heightened volatility, all eyes are on whale behavior and key price zones that could determine the coin’s next big move.
