In the last 24 hours, meme coin king Dogecoin (DOGE) has suffered volatility, leading to huge liquidation imbalance. This caused traders betting on the continued price growth of the asset to suffer massive losses.
Longs take fall as Dogecoin retraces gains
According to CoinGlass data, the price shift within this time frame wiped out $15.83 million worth of DOGE. Notably, long sellers suffered a higher loss as $13.72 million in investments were forfeited in the liquidation imbalance.
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This set-up disadvantaged long position traders by about six times compared to short sellers, who registered a loss of $2.11 million.
DOGE, which traded at $0.2312 with potential for more upward movement that mirrored Bitcoin’s trajectory, suddenly plunged to a low of $0.2238. This shocking development upset the projections made by long position traders.
As of this writing, DOGE price was changing hands at $0.2283, representing a 1.80% decline in the last 24 hours. However, this suggests that the meme coin is recovering from the $0.2238 level it slipped to in earlier trading.
Despite this potential, sellers remained aggressive and continued to dump to avoid further losses. Trading volume has plunged by a massive 38.45% to $1.99 billion within the period.
DOGE’s attempt to reclaim $0.23 has faced resistance, and investors might have to wait longer to see a sustainable recovery.
Can DOGE rebound before May ends?
Interestingly, Bitcoin (BTC) recorded a similar liquidation imbalance. Long-position traders lost $115.57 million, while short traders lost $37.90 million. This leaves Bitcoin’s total liquidation at $153.47 million.
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It signals that Dogecoin not only matched Bitcoin in growth, but it also mirrored its liquidation trend.
With the widespread liquidation in the crypto space, the meme coin is hard-pressed to repeat history. With just seven days left for May to end, market watchers remain keen to see if Dogecoin has what it takes to profit for investors.