A 14% Drop in Dogecoin Value Caused by a $5 Million Liquidation

The current decline in the cryptocurrency market has been particularly hard for Dogecoin (DOGE). Thursday was a rough day for the meme-based cryptocurrency, with a 14% decline in value over the last day.

A staggering $4.8 million worth of DOGE long bets were liquidated, as reported by Coinglass, a tool that tracks crypto derivatives. This means that those who gambled on the price of DOGE going up were squeezed when the price fell down. In contrast, short positions, which involve betting on a decline in price, saw very few liquidations totaling just $56,680.

The price of DOGE plummeted to a three-month low just as this liquidation event took place. A blockchain analytics business called IntoTheBlock found a significant support zone between $0.099 and $0.117, where the price is now sitting. If this area, which is symbolic of many DOGE wallets, remains intact, the price may be able to recover and go back up around $0.142.

Among Liquidations, Dogecoin Stands Out
Although DOGE is under scrutiny, it is not the only cryptocurrency that is experiencing difficulties with liquidation. Over $321 million worth of cryptocurrency was liquidated as a whole due to the wider market slump.

In an interesting turn of events, DOGE has surpassed larger players like Solana (SOL) to claim fourth place for most important liquidations. Pepe (PEPE) and Dogwifhat (WIF), two relatively new meme currencies, have also had large liquidations.

How About DOGE?
Dogecoin, however, has some negative technical signs. Current attitude is in line with the price estimate of a 13% decline by August 4th. This pessimistic view is further supported by the Fear and Greed Index, which stands at 29.

Furthermore, Dogecoin's price volatility was substantial, suggesting the decline may be continuing, even if it was positive for one third of the last 30 days.