Dogecoin (DOGE) Bulls Wiped out as Liquidation Imbalance Hits 418%

On Monday, Feb. 9, the prolonged crypto market pullback has triggered a wild liquidation imbalance for the world’s largest meme token by market capitalization, Dogecoin, with long traders suffering losses.

While Dogecoin has continued to lose momentum and its price has continued to fall, data from CoinGlass shows that $DOGE traders opening long positions to bet on its price upsurge have suffered a combined loss of $3,041,239 over the last 24 hours.

During that period, the $DOGE price had dropped notably by 4.05%, causing the liquidation session to move against bullish traders while triggering a 418% liquidation imbalance in favor of short traders.

Notably, the data further shows that short-position traders were not entirely spared from the losses as the asset have been showing mixed price actions. However, the short traders suffered mild losses of about $587,000 within the same 24-hour period.

The 418% liquidation imbalance seen during the period is not entirely a surprise as it has come amid a negative trading session where overleveraged positions were exposed to heightened liquidation risk, as the broad crypto market continues to face a prolonged price bloodbath.

Dogecoin drops 4.28%

After showing impressive strength and notable price gains earlier this year, Dogecoin has eventually switched to a bearish mode, with its price trading steady in red territory.

According to data from CoinMarketCap, Dogecoin has dropped from a peak of $0.09844 to an intraday low of $0.09258 over the last 24 hours. While this trend has persisted for the past week, Dogecoin’s price has recorded a massive 11.43% decrease over the last seven days.

With bearish sentiment seeing Dogecoin retest its multimonth lows, investors are worried that long traders will not retrieve their losses anytime soon as the asset is yet to show any sign of recovery.

In addition to the prolonged volatility, Dogecoin has also remained muted in the ETF market as existing Dogecoin ETFs have continued to record zero flows in recent days.