The Loss of $16 Million by Long Traders in Dogecoin: What Does It Mean for You?

Dogecoin’s long liquidations reached a 30-day high of $16 million on April 12, according to Coinglass. This increase in liquidations is a result of the overall market decline following Bitcoin’s price depreciation. In fact, the cryptocurrency market saw over $860 million worth of trade positions being liquidated among 270,993 traders.

On-chain data shows that Dogecoin’s long liquidations have not reached such a high volume in its Futures market since March 6. Liquidations occur when a trader’s position is forcefully closed due to insufficient funds. Long liquidations specifically happen when there is an unexpected decline in an asset’s price, causing traders who have open positions in favor of a price rally to exit their positions.

In comparison, Dogecoin’s short liquidations on the same day totaled $3.08 million, according to Coinglass data.

The price of Dogecoin has experienced a 13% decline in the last 24 hours, adding to its 6% weekly losses. At the time of writing, Dogecoin was valued at $0.1721. Analysis of the altcoin’s price movements suggests that it may continue to lose value this weekend, as key momentum indicators show a decline in demand and an increase in coin sell-offs.

The coin’s Directional Movement Index (DMI) indicates a shift from bullish momentum to bearish, with the positive directional index falling below the negative index. Additionally, Dogecoin’s MACD line is above its Signal line, confirming the bearish trend.

Overall, it seems to be a challenging time for Dogecoin holders as the coin faces further value decline.