Dogecoin (DOGE) has recorded a massive liquidation imbalance in the last hour as the meme coin’s price resets. As per ConGlass data, Dogecoin long position traders suffered a 12,928% liquidation imbalance as the price declined by over 2.7% in the last 24 hours.
Dogecoin battles volatility amid Bitcoin slip
Dogecoin has been on a downward spiral in the last 30 days, plunging by 28.02%. The loss of momentum has lingered for a while, but some bullish traders anticipated a reversal was on the horizon. These long-position traders bet on the meme coin’s price to witness an uptick.
However, this failed to materialize, wiping out $304,860 in the last 60 minutes. Dogecoin has seen its price drop from a daily high of $0.103 to a low of $0.09862. DOGE has once again slipped below the critical $0.10 level, losing the gains made in recent days.
Short traders were not spared as they were wiped clean of a total of $2,304. This is due to the sharp drop that caught short-position traders unawares.
As of this writing, Dogecoin was changing hands at $0.09873, which represents a 2.71% decline in the last 24 hours. The meme coin’s trading volume has also dipped by a massive 31.38% to $1.08 billion. This is likely due to the meme coin-wide market sell-off, as the sector recorded capital rotation within the last 24 hours.
Coincidentally, Bitcoin, to which DOGE is coupled, has also dropped by over 1.45%, increasing the bearish impact on the meme coin. This price slip and capital rotation to less riskier assets could have been responsible for the huge liquidation, which Dogecoin experienced within the 60 minutes.
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Market participants will need to monitor developments as a slip below the $0.0937 level could extend the losses. However, if Dogecoin is able to reclaim the $0.10 level, the meme coin might continue on its bullish rally.
Can DOGE’s golden cross trigger reversal?
Notably, a rally is possible given that over the weekend, Dogecoin’s open interest surged by 12%.
The uptick was triggered by the meme coin’s bullish price outlook. It is likely that the weekend optimism was what overflowed and prompted long-position traders to bet huge on DOGE.
Meanwhile, the golden cross flashed by Dogecoin about seven days ago might still improve the meme coin’s outlook, particularly with DOGE oversold.