Key Insights:
- Dogecoin bulls suffered 2,925% losses, leading to a $1.56 million liquidation in just four hours.
- Despite recent price decline, Dogecoin’s trading volume increased by 2.75%, signaling potential accumulation.
- Dogecoin’s resistance at the $0.2620-$0.2640 range continues to pressure upward movement, preventing significant gains.
Dogecoin (DOGE), the dominant meme coin, has experienced a notable decline despite the bullish momentum seen across the broader crypto market, with Bitcoin (BTC) leading the charge. Over the past 24 hours, Dogecoin’s price dropped by over 2.5%, triggering substantial losses for investors who were betting on a price increase. This sharp decline has wiped out over $1.5 million in Dogecoin holdings within just a four-hour period, according to CoinGlass data.
In a dramatic turn of events, investors who took long positions in Dogecoin faced severe financial setbacks. Over a brief span of four hours, traders betting on Dogecoin’s rise suffered 2,925% losses. Approximately $1.56 million worth of Dogecoin was liquidated during this short timeframe, adding further pressure to the struggling coin. Despite the broader market’s bullish performance, DOGE’s failure to rally along with Bitcoin caused significant frustration among bullish traders.
Short Traders Feel the Heat as Well
While the brunt of the losses fell on long-positioned investors, short traders were not entirely immune to the downturn. Though their losses were comparatively smaller, bearish investors also faced setbacks. In total, short traders lost approximately $51,580 within the same four-hour window. This highlights the volatile nature of Dogecoin, where even traders betting against the asset faced some level of financial exposure.
Dogecoin’s struggle to maintain upward momentum can be attributed to persistent resistance around the $0.2620-$0.2640 range. This price zone has been a significant barrier for the coin, as many investors opt to take profits every time DOGE nears these levels. This resistance point has historically marked a turning point during market downturns, and despite the overall positive outlook for the broader crypto market, DOGE has been unable to break through.
Signs of Accumulation Amidst the Dip
Despite the recent price drop, there is evidence of ongoing market activity. Trading volume for Dogecoin has risen by 2.75% to $3.17 billion, indicating potential accumulation as investors may be seizing the opportunity to buy the dip. Moreover, the coin’s price earlier in the week showed signs of promise, with a golden cross suggesting the possibility of an “Uptober” rally. If Bitcoin continues its bullish momentum, it could provide the necessary boost for Dogecoin to recover.
While Dogecoin’s performance remains under pressure, the crypto community’s confidence in the meme coin has not entirely waned. At the start of the month, investors showed a strong bullish outlook, committing nearly $4 billion to Dogecoin’s derivatives market. This surge in open interest signals the high level of optimism surrounding DOGE’s future potential. Whether this confidence can carry the coin through its current struggles will depend on how the market evolves in the coming days.
