Dogecoin (DOGE), the leading meme coin, has recorded a massive liquidation imbalance of 165,815% in just an hour. This staggering liquidation occurred despite the massive volume slip in the Dogecoin ecosystem.
Dogecoin bulls over-exposed
As per CoinGlass data, this resulted in a total liquidation of $462,340 within the last 60 minutes. Notably, the 165,815% imbalance between long and short position holders is considered unusual within the short time frame.
Long position traders registered $287,990, while short position holders suffered $174.350 in liquidation. This indicates that long holders recorded more losses within the time frame. The liquidation comes as Dogecoin continues to display volatility in price and a massive plunge in volume.
As of this writing, Dogecoin’s trading volume has slipped by 41.14% to $2.36 billion; this significant plunge in volume has impacted the price. The meme coin’s value has dropped to $0.1369, representing a 1.46% decline within the period.
The liquidation imbalance suggests that many Dogecoin holders were betting on a rally for DOGE in the meme coin market. It signals that bulls were overly optimistic about a possible price recovery but were caught unawares by the market development.
A recent appearance of Dogecoin on Wall Street had sparked massive excitement in the community as 21Shares announced the 2x Long Dogecoin exchange-traded fund (ETF). The development raised hopes of the possible launch of more Dogecoin ETFs in the coming days.
Community warning as scammers target DOGE’s popularity
Interestingly, the meme coin had earlier registered an over 40% spike in volume as market participants looked forward to a rebound. The volume saw approximately $3.1 billion moved as traders engaged with DOGE.
Meanwhile, as investors await stability and Dogecoin’s recovery, a developer in the community has cautioned community members to stay vigilant. The warning is important because there is suspicion that some malicious persons are seeking to profit from the brand.
According to Mishboar, Dogecoin is decentralized, and no single individual can claim to represent the entity. He urged DOGE holders to ignore people leveraging the chain to promote different financial products.
Source: https://u.today/dogecoin-liquidation-imbalance-rockets-165815-despite-volume-slip
