Dogecoin’s Long Liquidations Spike to 30-Day High, Signal Bearish Sentiments
In the volatile world of cryptocurrencies, Dogecoin (DOGE) has been making headlines once once more. Over the last 24 hours, the long liquidations of Dogecoin have surged to a 30-day high, according to Coinglass data. This increase in liquidations is a direct result of the broader market downturn following Bitcoin’s decline in price. Notably, the entire cryptocurrency market witnessed the liquidation of trade positions totaling over $860 million among traders numbering 270,993.
On-chain data analysis reveals that DOGE’s long liquidations amounted to $16 million. It is worth noting that the last time the coin experienced such a high volume of long liquidations in the Futures market was on March 6.
Liquidations occur in a coin’s Futures market when a trader’s position is forcibly closed due to insufficient funds to sustain the position. Long liquidations specifically happen when there is an unexpected decline in the asset’s price, leading traders who were hoping for a price rally to exit their positions.
In comparison, DOGE short liquidations totaled $3.08 million on the same day, as reported by Coinglass data.
As DOGE continues to grapple with its losses, its price has plunged by 13% in the past 24 hours. The leading memecoin is currently valued at $0.1721 according to CoinMarketCap. By examining the altcoin’s price movements on the 1-day chart, key momentum indicators are suggesting that DOGE might experience further declines this weekend. The values of its Relative Strength Index (RSI) and Money Flow Index (MFI) stand at 46.85 and 46.53, respectively. These indicators indicate a decline in demand for DOGE among market participants and an increase in coin sell-offs.
Furthermore, readings from DOGE’s Directional Movement Index (DMI) demonstrate a shift from bullish momentum to bearish. The positive directional index (green) fell below the negative index (red) on April 12. This shift implies the re-emergence of bears and an increase in profit-taking activities.
DOGE’s MACD line confirms the bearish sentiment as it rests above its Signal line at present. This suggests that DOGE’s short-term moving average is higher relative to its long-term moving average.
These recent developments in the DOGE market have important implications for the future of the cryptocurrency industry. The surge in long liquidations for Dogecoin reflects the current trend of increased market volatility and potential bearish sentiments.
As the cryptocurrency market continues to evolve, it is essential for investors to closely monitor these price movements and adjust their strategies accordingly. While the future of Dogecoin remains uncertain, traders should exercise caution and assess the market conditions before making any investment decisions.
Overall, the recent spike in DOGE’s long liquidations underscores the unpredictable nature of the cryptocurrency market. Traders and investors must remain vigilant and stay informed regarding market trends to navigate this ever-changing landscape effectively.
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