- With $60M swept on Derivatives, Dogecoin breaks a record in daily liquidations.
- Cryptocurrency analysts believe the consolidation of DOGE is coming to a close.
- Eccentric crypto aficionado Arthur Hayes extends support by topping up his bags.
Dogecoin (DOGE) faced the crypto bears, as bullish crypto Derivatives trades have burnt an eye-watering $60 million over liquidations. Yesterdayโs plunge to a monthly low of $0.1181 has resulted in Dogecoinโs liquidations topping Bitcoin (BTC), as the leading digital asset incurred $47 million long position liquidations over the same time frame.
Though Ethereum (ETH) accounted for the most liquidations at $76 million yesterday, Dogecoin remained the second most liquidated asset due to a double-digit drop in DOGEโs price. As the meme coin sector faces a pullback this week, financial analysts expect more crypto traders to divert from relatively riskier crypto assets to less fluctuating ones.
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However, some well-known crypto industry figures, such as Arthur Hayes, remain bullish on DOGE and take the 10% dip as a buying opportunity.
Is Dogecoin Nearing the Final Phase of Consolidation?
As crypto analysts are now in two minds about Dogecoinโs upcoming price movement, several technical analysts measure the chances of the token breaking out of the consolidation phase. Crypto Jack, a YouTuber with over 250K subscribers, highlighted Dogecoinโs ultimatum to close the weekly candle above $0.13 in order to break the triangle formation northward.
Technical cryptocurrency analyst Trader Alan expressed that DOGE is potentially trading in the ending phase of a triangle consolidation. โThese triangles have been seen in every cycle just before the HUGE Surge,โ predicts the analyst.
Several crypto analysts agree that a weekly close above $0.13 would validate the consolidation triangle upwards. However, the ongoing DOGE rebound surge is capped below a 3% daily upswing. As of press time, Dogecoin is changing hands at $0.125. Even though DOGE successfully rebounded from the 3-month lows of $0.118, the top dogโs market value remains in dangerous territory due to low whale activity and 24-hour sell orders on Spot still slightly outweighing the DOGE bids.
On the Flipside
- According to the latest stats from CoinGlass, Dogecoinโs liquidations dramatically slowed down on Wednesday.
- Out of the $3.50 million in overall liquidations, $2.35 million were DOGE longs, while short-sellers were set back $1.15 million.
Why This Matters
Leveraged positions in crypto bring an additional opportunity to capitalize on knowledge but also amplify the risks of getting liquidated if the position goes the opposite way as planned.
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