Dogecoin Decimated: $5 Million Liquidation Sparks 14% Price Plunge

Christian Encila

11 months ago

3 mins read

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Dogecoin (DOGE) is suffering because to the recent decline in the cryptocurrency market. This Thursday, the meme-based cryptocurrency saw a sharp decline in value, falling 14% in just the previous day.

DOGE down in the last day. Source: Coingecko

Long Positions Liquidated

The cryptocurrency derivatives tracking site Coinglass reports that DOGE saw a staggering $4.8 million in long positions liquidated. This means the price decline squeezed investors who had gambled on DOGE’s price gain. On the other hand, modest liquidations occurred for short positions (bets on a price fall) at only $56,680

This liquidation event brings DOGE’s price down to a three-month low at the same time as a significant decline. The price is presently between $0.099 and $0.117, which is a critical support zone that the blockchain analytics company IntoTheBlock found. If this zone holds, it indicates that a lot of wallets are keeping DOGE, and the price may rise back up to $0.142.

Dogecoin Not Alone, But A Leader In Liquidations

Although DOGE is under pressure, it’s not the only cryptocurrency having problems with liquidation. A total of roughly $321 million in cryptocurrency liquidations were the outcome of the larger market slump.

LIQUIDATION DATA IN 24 HOURS

TOTAL LIQUIDATIONS: UP TO $321.28M

TOP 5 COINS WITH HIGHEST LIQUIDATION:$BTC ~ $91.51M $ETH ~ $71.90M$SOL ~ $12.84M $DOGE ~ $5.39M $WLD ~ $5.23M #Blockchain #DeFi #liquidation pic.twitter.com/e6Dv5uQbkn

— PHOENIX – Crypto News & Analytics (@pnxgrp) July 4, 2024

It’s interesting to see that DOGE, having surpassed larger participants like Solana (SOL), comes in at number four for most major liquidations. Not even more recent meme currencies like Dogwifhat (WIF) and Pepe (PEPE) have escaped the damage; they have also seen large liquidations.

Even with its recent setbacks, Dogecoin is still a major participant in the cryptocurrency space. It is based on the well-established Litecoin blockchain and has a market capitalisation of more over $13 billion

DOGE is currently trading at $0.09. Chart: TradingView

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

There is a bright side for DOGE. The spot market, which is where real cryptocurrency purchases and sales take place, does not appear to be under as much selling pressure as the futures market. According to data, purchase orders for DOGE are actually exceeding sell orders by about $1 million.

But it appears that Bitcoin (BTC) and DOGE have a same destiny. Due to their strong price association, even slight declines in Bitcoin can have a big effect on the price of DOGE. The price of DOGE may be indirectly impacted by recent events such as possible sell-offs from the failed cryptocurrency exchange Mt. Gox and the German government’s sale of Bitcoin that has been seized.

Will DOGE Rebound?

Meanwhile, the technical indications for Dogecoin are pointing downward. The price forecast of a 13% decline by August 4th is in line with the general attitude. The Fear and Greed Index, which is now at 29, confirms this gloomy prediction.

Furthermore, Dogecoin’s price fluctuated a lot even though it spent a third of the previous 30 days in positive territory, which would mean that the decline will continue.

Featured image from Unsplash, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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