Dogecoin (DOGE) Slips Back Amid $300 Million Liquidation Storm
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Dogecoin (DOGE), the meme coin with the highest market capitalization, briefly climbed to $0.11 on August 25. However, following a decline over the next 24 hours, it slipped back to $0.10.
This drop in DOGEâs value mirrors a broader market downturn that has impacted many other cryptocurrencies, leading to widespread declines across the sector.
Dogecoin Takes 1% of the Market Wipeout
According to Coinglass, the recent price drop in Dogecoin (DOGE) and other cryptocurrencies led to $341 million in liquidations within 24 hours.
Liquidation happens when traders canât meet margin requirements, forcing exchanges to close positions, especially those with high leverage. Dogecoin accounted for roughly 1% of the total liquidations, amounting to $3.08 million, with long positions being hit hardest.
Liquidations not only reflect a wave of position closures but also play a role in shaping price trends. For DOGE, the increase in long liquidations amid the price drop indicates a heightened risk of the coinâs value falling to its underlying support level.
If short liquidations had dominated, Dogecoin (DOGE) would have had a better chance of a quick rebound. During this period, DOGEâs trading volume surged above $700 million before dipping below that level.
Volume serves as a key indicator of market interest, showing how much value is being traded. It can also suggest the potential direction of an assetâs price.
For example, when volume rises along with price, it typically reinforces an uptrend. Conversely, if volume decreases while the price increases, the upward momentum weakens, suggesting the assetâs value may decline.
For Dogecoin, the surge in volume alongside a price decrease indicates that the downtrend could gain more power.
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