- Dogecoin has dropped over 8% weekly, with significant short trader liquidations in the futures market.
- Whale wallets accumulated more than one billion DOGE during the price dip, indicating strategic buying activity.
- Futures trading on Coinbase rose 24% even as retail volume fell, signaling growing interest from institutional players.
Dogecoin has recorded an 8.55% decline over the past week, with a further 3.37% drop in the last 24 hours. As of the latest data, Dogecoin is trading at $0.2007, down from a peak of $0.2082. This pullback comes amid a broader market downturn that has triggered widespread liquidation events across the crypto sector.
According to data from CoinGlass, short traders have taken the heaviest hit in Dogecoin futures. Within the last hour, $106,770 worth of short positions were wiped out, reflecting a 25,341% liquidation imbalance compared to long trades. Long position traders also saw a minor loss of $419, bringing the total hourly liquidation amount to $107,190.
Futures Activity and Volume Shift
Despite the downturn, Coinbase reported a 24% rise in Dogecoin futures activity. However, trading volume has decreased significantly. The current trading volume sits at $1.51 billion, down by 13.07 percent, signaling a slowdown in retail activity. Analysts observe that the price zone between $0.2040 and $0.2080 remains a critical liquidation level for retail traders.
Amid the price drop, whales have taken the opportunity to increase their holdings. Over one billion DOGE has entered whale wallets within the past 48 hours. This marks one of the most significant accumulation events in the past month, suggesting strategic positioning by large holders anticipating a market shift.
Outlook for Dogecoin Shows Mixed Sentiment
Whale activity hints at confidence in a possible price rebound, although retail investors are grappling with continued losses. Earlier in the week, Dogecoin briefly regained upward momentum before the current pullback. Open interest in Dogecoin futures had increased at the time, indicating renewed trader interest. The ongoing developments suggest that whales are preparing for a potential reversal, while short sellers continue to absorb losses.
