The price of Dogecoin (DOGE) experienced a significant increase in long liquidations, reaching a 30-day high of $16 million on 12th April. This surge in liquidations was attributed to the larger market downturn following Bitcoin’s price decline. With over $860 million in trade positions liquidated among close to 270,993 traders, DOGE stood out with its substantial long liquidation volume after a similar event on 6th March.
The on-chain data revealed that DOGE’s long liquidations amounted to $16 million, indicating a bearish sentiment prevailing among traders in the Futures market. Alongside long liquidations, DOGE also saw short liquidations totaling $3.08 million on the same day. As DOGE’s price dropped by 13% within 24 hours, continuing a 6% weekly loss, market indicators suggested further declines in value. Key momentum indicators like Relative Strength Index (RSI) and Money Flow Index (MFI) pointed towards diminishing demand for DOGE.
Moreover, analysis of DOGE’s price movements on the 1-day chart indicated the potential for more losses ahead. The coin’s Directional Movement Index (DMI) revealed a shift from bullish to bearish momentum, with profit-taking activities on the rise. Despite DOGE’s short-term moving average being higher relative to its long-term average, the MACD line above the Signal line hinted at continued selling pressure. This situation may pose challenges for Dogecoin holders in navigating the ongoing market volatility.