NEW YORK (AP) – Dogecoin investors faced significant losses totaling $16 million on 12 April as bearish sentiments continued to impact the memecoin market.
According to data from Coinglass, Dogecoin’s long liquidations surged to a 30-day high in the past 24 hours, coinciding with a broader market downturn following Bitcoin’s price decline. Across the cryptocurrency market, over $860 million in trade positions were liquidated among nearly 271,000 traders.
On-chain data revealed that Dogecoin’s long liquidations reached $16 million, marking the highest volume of long liquidations in the Futures market since 6 March. Long liquidations occur when an asset’s price unexpectedly drops, forcing traders with open positions supporting a price rally to exit their positions due to insufficient funds.
Comparatively, Dogecoin saw short liquidations totaling $3.08 million on the same day, as reported by Coinglass. The overall decline in Dogecoin’s value reflected a 13% drop in price over the past 24 hours, with the cryptocurrency trading at $0.1721.
Analysts predicted further value declines for Dogecoin as key momentum indicators pointed to decreased demand and increased selling activity. For instance, the Relative Strength Index (RSI) and Money Flow Index (MFI) values were indicative of weakening market participation and a rise in sell-offs.
Readings from Dogecoin’s Directional Movement Index (DMI) signaled a shift from bullish to bearish momentum, with the positive directional index falling below the negative index on 12 April. Additionally, the MACD line above the Signal line confirmed a short-term moving average higher than the long-term average, suggesting ongoing bearish trends.
As Dogecoin holders navigate through challenging market conditions, the indicators suggest a volatile period ahead with intensified selling pressure. Traders and investors alike need to proceed cautiously in the unpredictable memecoin landscape.