109,251,856 Dogecoin (DOGE) Stun Long Traders in Overnight Sell-off

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Dogecoin (DOGE) and other leading altcoins continue to suffer from market volatility. At press time, Dogecoin was trading at $0.1745, a 5.85% decrease in the last 24 hours, according to CoinMarketCap. This price drop has also resulted in a significant liquidation imbalance, disproportionately affecting long traders.

Dogecoin Liquidation Analysis

Recent weeks have seen a distinctive trend in DOGE liquidations as market volatility increases. CoinGlass data reveals over $23.65 million in DOGE liquidations in the past 24 hours. Long traders accounted for $19.13 million of this, representing 109,251,856.08 DOGE. Short trader liquidations totaled $4.52 million.

This liquidation imbalance isn't entirely unexpected for a volatile coin like Dogecoin. Despite overall market optimism in the long term, DOGE's price has consistently bucked the trend. With a 20.5% drop in the last seven days and a 46% year-to-date (YTD) decline, hopes for a swift recovery remain subdued. DOGE whale activity has also been limited recently, reflecting broader market caution.

Potential Positive Catalysts for DOGE

Despite the bearish trend, several potential catalysts could trigger a Dogecoin price rebound.

Firstly, its correlation with Bitcoin provides a crucial safety net. Although DOGE has experienced a sharper decline than Bitcoin, a Bitcoin price surge could fuel a broader market rally, benefiting DOGE.

Secondly, a Dogecoin ETF is another significant potential catalyst. Major asset managers, including Grayscale and Bitwise, are actively pursuing such a product. Bloomberg analysts suggest a relatively high probability of approval, leading long traders to remain optimistic about long-term growth despite the current sell-off. Read original article on U.Today