June 25, 2024

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Dogecoin – Long term traders lost $16 million; This is where it leaves you

Dogecoin – Long term traders lost $16 million;  This is where it leaves you
  • The total number of long liquidations for Dogecoin reached $16 million on April 12
  • Bearish sentiment continues to follow the memecoin

Dogecoin [DOGE] Long liquidations rose to a 30-day high in the past 24 hours, according to The Verge. Quinglass. This, against the backdrop of a larger market decline following a decline in the price of Bitcoin on the charts. In fact, the entire cryptocurrency market saw trade positions worth over $860 million liquidated among 270,993 traders.

On-chain data revealed that DOGE's long liquidations amounted to $16 million. The last time cryptocurrencies recorded such high volume in long liquidations in the futures market was on March 6.

DOGE Qualifiers Chart

Source: Coinglas

Liquidations occur in an asset's futures market when a trader's position is forcibly closed due to insufficient funds to maintain the position. Long liquidations occur when there is an unexpected drop in the price of an asset, causing traders who have open positions in favor of rising prices to be forced out of their positions.

By comparison, on the day in question, DOGE short liquidations totaled $3.08 million, according to Coinglass data.

Bracing for further decline in value

Extending its weekly losses of 6%, DOGE price fell 13% in the past 24 hours, according to CoinMarketCap. At the time of writing, the leading memecoin was valued at $0.1721 on the charts.

An assessment of the altcoin's price movements on the one-day chart showed that it may lose further gains at the end of this week. The main momentum indicators observed revealed a steady decline in demand for DOGE.

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For example, the Relative Strength Index (RSI) and Money Flow Index (MFI) values ​​were 46.85 and 46.53, respectively. These indicators indicated a decline in demand for altcoins among market participants and a sharp rise in coin sales.

Realistic or not, here is the market cap of DOGE in terms of BTC

Furthermore, the currency's Directional Movement Index (DMI) readings showed that the positive trend indicator (green) fell below its negative indicator (red) on April 12. When these lines trend this way, they indicate a shift from bullish momentum to bearish momentum. It signals a resurgence of bears and a slight increase in profit-taking activity.

Finally, DOGE's MACD line settled above its signal line at the time of publication and confirmed it. This also indicates that DOGE's short-term moving average was higher compared to its long-term moving average.

Source: Trading View

When these lines are arranged in this way, it is seen as a sign of intensifying currency selling. So, it will be a tough time to be a Dogecoin holder.