Dogecoin Faces 1,453% Liquidation Tilt as Market Selloff Takes Toll on Bulls
Key Summary
Dogecoin (DOGE) is experiencing a sharp market selloff, with a 1,453% imbalance in liquidations favoring long positions. The cryptocurrency has seen a total of $7.82 million in positions liquidated, with long positions accounting for $7.32 million and shorts of $503,630. This imbalance is a result of leveraged bullish bets being caught on the wrong side of the market move, leaving traders facing significant losses. DOGE is down 1.26% in the last 24 hours and 7.26% weekly, with prices falling below its 50 and 200 daily moving averages.
Market Selloff and Liquidation Imbalance
The latest market selloff has seen a sharp imbalance in liquidations, with long positions facing significantly heavier losses than shorts. According to CoinGlass, liquidations are skewed toward longs by 1,453%, showing how much leveraged bullish bets have been caught on the wrong side of the market move.
Long Positions and Short Sells
CoinGlass data shows a total of $7.82 million worth of Dogecoin positions liquidated. Long positions were dominant, with $7.32 million against shorts of $503,630. The percentage imbalance between longs and shorts yields 1,453%. This imbalance comes as DOGE faces renewed selling pressure alongside a broader cryptocurrency market pullback.
Traders' Positions and Losses
At the time of writing, Dogecoin was down 1.26% in the last 24 hours to $0.0873 and down 7.26% weekly. Dogecoin entered its fourth day of decline after bulls encountered resistance at October 4's high of $0.097. Price fell consistently from Monday, with the biggest losses reported on Wednesday as Dogecoin closed the day down 5.41%. Given the persistent drop, traders naturally anticipated a relief rally, but this was not the case as prices fell further in the market.
Short Traders' Gains
In this light, traders who entered leveraged long positions expecting a price rebound are now facing forced closures as the price moved lower. Dogecoin fell beneath its 50 and 200 daily moving averages at $0.0892 and $0.087, respectively, to reach a low of $0.0855 early Thursday.
Short Traders' Success
As with every scenario, there are two sides of the coin. Dogecoin's ongoing drop has sent short traders into profit, with Lookonchain reporting one such trader who opened a 20x short on Dogecoin. According to Lookonchain, trader '0xdd6a', who opened 20x shorts on BTC, ETH, SOL, XRP, and DOGE on Aster, is currently in profit. The total position size is $26.5 million, with $586K in unrealized profit.