Dogecoin Rockets 1,000% Liquidation Imbalance in 4 Hours

The cryptocurrency market has witnessed significant price movements over the last 48 hours, with a substantial impact on market positions. This price shift has triggered liquidation on the bets that investors placed on Dogecoin (DOGE) in the past four hours.

Long traders wiped out as Dogecoin pulls back

According to CoinGlass data, traders betting long on Dogecoin have suffered a loss as the price suffered a slight pullback from its upward trajectory. Within the last four hours, long position traders have seen $594,130 wiped out in a sudden turn of events.

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This liquidation set DOGE up with a liquidation imbalance of 1,000% for long traders who were bullish on further price gains. However, short traders also experienced mild liquidation within the period. A total of $53,980 was recorded for those betting short on the meme coin.

The massive 1,000% liquidation imbalance came as volatility hit Dogecoin amid its bullish recovery. The meme coin had earlier soared to $0.2129, supported by surging volume. As of this writing, Dogecoin is exchanging at $0.2016, which represents a 1.45% increase in the last 24 hours.

Despite the temporary decline to $0.1973, which triggered the liquidation, the meme coin has reclaimed the $0.2 price level. It is trading sideways, but volume remains up by 36.01% at $3.36 billion, a crucial factor that could support its upward journey.

Can DOGE regain momentum?

Despite the volatility, some market participants still believe that Dogecoin could close July on a bullish note. While historical data does not favor DOGE much, optimism of a shift remains high given technical indicators and the outlook of the meme coin so far.

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Meanwhile, investors in the ecosystem have been busy transacting large volumes of the meme coin. Recently, market activity surged by over 300% after a previous bounce as whales accumulated the asset in a move that suggests rising confidence.

The sustained volume in the Dogecoin space signals that the liquidation does not move market participants. If momentum continues, prices could rebound higher.