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Dogecoin (DOGE), the king of meme coins, has suffered severe liquidation in the last 12 hours. This was triggered by intense volatility, which resulted in an over 10% price drop within the last 24 hours. According to CoinGlass’s liquidation heat map, approximately $58 million worth of assets have been wiped out within this period.
Notably, Dogecoin bulls suffered the greater loss in the liquidation imbalance as $56,520,000 was lost by long position traders. These traders were betting on a bullish price for DOGE, but the prevailing market volatility has dashed market expectations.
Primarily, the market rotated, with capital shifting to Bitcoin from altcoins. Within the last 24 hours, the Altcoin Season Index fell by over 11.5% as Bitcoin regained dominance. This development has reduced the amount of funds investors are willing to commit to the meme coin.
The shift triggered profit-taking among retail traders as they panicked amid the declining price outlook. As of press time, Dogecoin’s price was changing hands at $0.2397, which represents a 10.95% decline in the last 24 hours.
Despite the severe liquidation, trading volume remains in the green, up by 181.28% to $4.83 billion. This huge volume could be from large holders or other investors, who remain bullish in the midst of the temporary setback. These groups are arguably accumulating the meme coin at a lower value before it rebounds again.
Short position traders have not been left out of the losses triggered by Dogecoin’s volatility. These traders saw $1.47 million of bets wiped out within the same 12-hour period.
With Dogecoin still holding above the $0.23 resistance zone, this has fueled hopes of a possible swift recovery for the meme coin. The asset might recover if Bitcoin, the leading crypto asset, begins to show positive growth.
Interestingly, despite capital rotation into Bitcoin, the flagship crypto coin remains down by 2.44% as it trades at $112,902.41. If there is a price surge, Dogecoin might ride on it to begin its recovery journey toward the elusive $0.30 target. Investors are still anticipating an unexpected price explosion, and that explains the volume spike.
Within the last 10 days, Dogecoin confirmed a golden cross with a price surge to cancel out the death cross that appeared toward the end of August. If ecosystem bulls continue to show support, the meme coin might rebound soon enough.
