Dogecoin (DOGE), a meme-based cryptocurrency, has lost 14% of its value in the last 24 hours due to the recent drop in the value of cryptocurrencies.
Coinglass, a crypto derivatives data tool, says that $4.8 million worth of DOGE long positions were closed because investors betting on a price rise lost a lot of funds. On the other hand, short holdings had very few liquidations, totaling only $56,680.
At the same time as this sale event, the price of DOGE dropped a lot, reaching its lowest level in three months. The price range between $0.099 and $0.117 has been identified by blockchain analytics company IntoTheBlock as a key support zone. The price might go back up to $0.142 if this area stays stable.
Dogecoin’s Continued Market Presence
DOGE isn’t the only cryptocurrency having trouble with liquidation. The overall market downturn caused over $321 million to be lost in liquidations across all cryptocurrencies. DOGE comes in at number four on the list of major liquidations, behind Solana (SOL) and Dogwifhat (WIF) and Pepe (PEPE), two joke coins that are much younger.
Dogecoin is still a major player in the cryptocurrency market, even though it has been having some problems lately. It runs on the well-known Litecoin blockchain and has a market value of over $13 billion.
There is a good thing about DOGE. On the spot market, there are nearly $1 million more buy orders than sell orders, which is different from the futures market and shows that investors are more confident.
But DOGE’s price is still very closely tied to Bitcoin (BTC), and even small drops in BTC have a big effect on DOGE. Selling from the now-defunct cryptocurrency exchange Mt. Gox and the German government’s selling of seized Bitcoin could have an effect on the price of DOGE in a roundabout way.
At the moment, technical signs for Dogecoin are pointing down. The Fear and Greed Index, which is currently at 29, supports the view that the price will drop by 13% by August 4th. Dogecoin’s price has been very volatile, even though it has been positive for a third of the last 30 days. This suggests that the decline may continue.
