591 Million Dogecoin (DOGE) Liquidated in 24 hours, What's Happening?

Dogecoin Liquidations Surge Amidst Market Downturn

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The cryptocurrency market has experienced a significant drop in the past 24 hours, triggering a major liquidation event in Dogecoin (DOGE). According to data from CoinGlass, approximately $434.64 million worth of liquidations have occurred, with Dogecoin contributing significantly to this figure.

Dogecoin's Historic Liquidations

Due to its status as a meme coin, traders typically limit their exposure to DOGE. However, the recent 10.54% decline to $0.12 has resulted in substantial losses for long traders.

The market downturn has caused approximately $60.86 million in total liquidations, with $60.23 million attributed solely to long traders. This equates to 507,166,666 DOGE liquidated to date.

Exposure and Accumulation

The overexposure of market participants to DOGE is evident in these liquidation figures. Despite the recent sell-off, there has been significant whale accumulation in the past, which has partially mitigated the decline and resulted in a 22% drop over the past month.

Bearish Slump Benefits

While the bearish slump has caused losses for overexposed traders, it may ultimately prove beneficial for Dogecoin. The Relative Strength Index (RSI) has dropped to 28, indicating an oversold market.

This drawdown may exhaust the supply of DOGE available for bears to sell. At that point, a "buy the dip" trend could emerge, potentially driving a recovery in Dogecoin's value.

If this scenario unfolds, DOGE may regain its lost market capitalization and maintain its position as the top capitalized meme coin among the top 10 cryptocurrencies.