Dogecoin traders saw $13.88 million liquidated within 24 hours, with long positions dominating the imbalance at 92%, marking a significant market anomaly tied to overleveraged trading during volatile price swings.
Dogecoin Market Faces Suspicious Activity
There has been suspicious behavior in the Dogecoin (DOGE) market. Data from CoinGlass made public the fact that the famous meme cryptocurrency's derivatives trading saw an unusual imbalance in the past day.
Even though the entire cryptocurrency market is worth only $402.63 million, DOGE is still one of the biggest assets according to this metric, with a total of $13.88 million in liquidated positions.
Since 92.36 percent of Dogecoin liquidations are long positions, the problem is not with their magnitude but with their character.
The sum of liquidated longs exceeds the total of liquidated shorts by 1,209% if we endeavor to construct an even more irrational figure. The rationale, as usual, is straightforward: exchanges send margin call notifications to traders who are either too leveraged or too late to appropriately evaluate risk.
DOGE Liquidations Spike Amid Volatile Trading Patterns
But why do they act in this way? With a string of lower highs and higher lows, Dogecoin's price has been trading like it's going to do a big pump in the past 24 hours.
Given that DOGE frequently tracks the biggest cryptocurrency, and since Bitcoin was also at its all-time high at the same moment, the price chart painted a hopeful image, U.Today points out.
Nonetheless, many long positions were liquidated and expectations of a DOGE breakout were dashed by the massive sell-off that began today's trade.
Sell-Off Cripples Dogecoin Breakout Potential
Following that, Dogecoin's price jumped 1.5% today, marking yet another rebound. But that backfired, and the result was a more bullish liquidation.
The duration of this trend is uncertain; bulls have been punished, while bears have been celebrated.
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