Dogecoin experienced a dramatic liquidation imbalance of 165,815% within a single hour, marking one of the most significant trading events for the leading meme cryptocurrency. The extreme volatility occurred despite a substantial decline in overall trading activity across the Dogecoin ecosystem.
The liquidation event resulted in total losses of $462,340 within one hour. Long position traders bore the brunt of the losses, with $287,990 in liquidations compared to $174,350 for short positions. This disparity reveals that bullish traders suffered disproportionately during the volatile period.
Trading Volume Plummets as Price Declines
Market data shows Dogecoin’s trading volume dropped 41.14% to $2.36 billion during the period. The sharp decline in trading activity directly impacted the token’s price performance. Dogecoin’s value fell to $0.1369, representing a 1.46% decrease within the timeframe. At the time of writing, Dogecoin is trading at $0.1382, suggesting a 0.96% increase in the last 24 hours.
DOGE price chart, Source: CoinMarketCap
The substantial liquidation figures indicate many traders had positioned themselves for an upward price movement. Market participants appeared optimistic about a potential recovery but were caught off guard by sudden market shifts. The imbalance between long and short liquidations suggests that bulls dominated the market sentiment before the downturn.
Market excitement had intensified following 21Shares’ announcement of a 2x Long Dogecoin exchange-traded fund. The development appeared on Wall Street and generated significant buzz within the cryptocurrency community. Investors viewed the ETF launch as a potential catalyst for increased institutional adoption and additional Dogecoin-based investment products.
The announcement initially triggered more than a 40% surge in trading volume. Approximately $3.1 billion moved through Dogecoin markets as traders positioned themselves ahead of anticipated price movements. The volume spike demonstrated strong market interest in the meme cryptocurrency despite ongoing volatility.
Source: https://coinpaper.com/12549/dogecoin-liquidation-imbalance-hits-165-815-in-one-hour
