109,251,856 Dogecoin (DOGE) Stun Long Traders in Overnight Sell-off

The market turbulence has continued to weigh down Dogecoin (DOGE) and the top altcoins. As of press time, Dogecoin was trading at $0.1745, down by 5.85% in 24 hours, per data from CoinMarketCap. This price drawdown has also triggered an unusual liquidation imbalance that has generally weighed down long traders more.

Dogecoin liquidation outlook

DOGE liquidations have shown a unique trend over the past few weeks as market volatility intensifies. Per data from CoinGlass, Dogecoin has seen over $23.65 million in liquidations over the past 24 hours.

Of this, $19.13 million in liquidations were recorded by long traders, amounting to $109,251,856.08 DOGE within the period. Short trader liquidations, on the other hand, came in at $4.52 million.

It is not uncommon for an altcoin as volatile as Dogecoin to have this liquidation imbalance. While the long-term market continues to showcase optimism, the DOGE price has always moved against it. With a seven-day drop of 20.5% and a year-to-date (YTD) drawdown of 46%, hopes for a decisive rebound remain low.

DOGE whale activity has remained limited in the past few weeks, proving the broader market’s cautiousness.

DOGE positive triggers to watch

Amid the broader bearish trend, Dogecoin has a couple of catalysts to fuel its overall price rebound.

First, the correlation with Bitcoin is its most significant insurance. While the coin has recorded a steeper slump compared to Bitcoin, a boost in the latter is the foundation for a broader market rally.

A Dogecoin ETF product also forms a significant tailwind for the digital currency. Top asset managers, including Grayscale and Bitwise, are front-running this DOGE ETF product.

According to Bloomberg analysts, Dogecoin has relatively high odds of approval, so long traders are optimistic that it has the basis to drive its rally in the long term beyond this sell-off.

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