Within a span of 24 hours, Dogecoin traders experienced losses exceeding $65 million amid what is being termed as the most significant liquidation event of the year so far. This turn of events transpired as the value of DOGE plummeted sharply after reaching a peak of $0.43 on Sunday.
Largest $60 Million Loss by Dogecoin Traders in 24 Hours
Data from Coinglass indicates that traders dealing in Dogecoin suffered losses surpassing $65 million within the last 24 hours. Traders with long positions bore the brunt of the impact, with approximately $54.81 million in long positions being liquidated during this period. On the other hand, short traders faced losses equating to $7.90 million in short positions that were liquidated.
The liquidation of short positions likely happened earlier on Sunday when the price of Dogecoin reclaimed the $0.40 support level and surged to as high as $0.43. However, the situation took a drastic turn later in the day, with prices crashing from the intra-day high of approximately $0.43 to as low as $0.35, leading to the closure of long positions.
Not only Dogecoin traders, but other participants in the cryptocurrency market also suffered substantial losses as the sector witnessed its most significant liquidation event for the year. Over $1 billion in total liquidations occurred in the last 24 hours, as per Coinglass data. Long traders bore the brunt of these losses, with $903.59 million in long positions being liquidated, while $260 million worth of short positions met a similar fate.
These liquidations transpired following a decline in the Bitcoin price from $106,000 to $100,000, impacting other coins like Dogecoin. The market-wide price adjustment was largely attributed to the launch of the ‘MELANIA’ meme coin by US First Lady Melania Trump, which diverted liquidity from other cryptocurrencies.
Given Dogecoin’s significant price correlation with Bitcoin, a crash in Dogecoin’s value was anticipated as the primary cryptocurrency experienced a sharp decline to $100,000.
The Ongoing Cycle
Cryptocurrency analyst Kevin Capital offered some optimism to Dogecoin traders, asserting that the current cycle is not yet concluded. Capital also referenced the ‘TRUMP’ and ‘MELANIA’ meme coins in addressing those dissatisfied with Donald Trump and his team. He suggested that Dogecoin could have remained at $0.11 if Trump had not won the election, rather than Kamala Harris.
He encouraged Dogecoin investors and traders to appreciate the progress made by DOGE since November 5th, 2024, following Trump’s electoral victory. Trump’s triumph last year served as a pivotal factor in Dogecoin’s price surge after maintaining a stagnant value for most of the year, particularly when Elon Musk’s Department of Government Efficiency (D.O.G.E) appeared closer to realization during Trump’s lead in polls.
At present, the price of Dogecoin stands at around $0.36, marking an 8% decline over the past 24 hours, as per data from CoinMarketCap.
