Dogecoin traders saw a swift wave of liquidations as the cryptocurrency endured another round of market losses, heavily impacting bullish investors. Data showed a sharp imbalance in forced closures, with leveraged long positions facing significantly higher liquidations than shorts.
Longs face heavy losses as market turns
CoinGlass reported that total Dogecoin liquidations reached $7.82 million, with $7.32 million erased from long positions and $503,630 from shorts. The ratio of liquidations skewed toward longs by 1,453%, highlighting the magnitude of pain for those expecting a rebound.
Dogecoin’s price dropped 1.26% over the last 24 hours to $0.0873 and registered a 7.26% decline on the week. Enthusiasm among bulls had begun to fade after the token encountered resistance at the previous high of $0.097 earlier in October.
The downturn marked Dogecoin’s fourth consecutive day of losses, with Wednesday seeing the steepest drop as the coin declined by 5.41%. Many traders anticipated a relief rally after the decline, but instead, the downward pressure persisted, leaving those in leveraged long positions exposed to further drawdowns.
Key technical levels breached
As prices continued their slump, Dogecoin fell beneath both its 50-day and 200-day moving averages, recorded at $0.0892 and $0.087, respectively. Early Thursday, the token hit a low of $0.0855, deepening losses for bullish traders who were betting on a swift recovery.
This pattern of trading activity mirrors trends observed in other meme tokens, where technical breakdowns often create sharp imbalances in liquidations as market participants recalibrate their positions. The meme token market is also known for rapid, trend-driven momentum shifts, underlining the importance of tracking not just prices but also investor behavior and timing.
In the meme token market, an internet trend can transform into millions of dollars of interest within days. According to data shared by Fomo App, a trade involving “Niu Lai”—which turned an initial $99 investment into approximately $370,000, stands out as a striking example of this activity. In this market, tracking not only prices but also the timing and token choices of investors is crucial. Fomo App brings token discovery and trading together on a single platform, featuring social feeds, investor rankings, and trade notifications. Discover Fomo App to follow the world of meme tokens alongside investor activity.
Short sellers and whale activity
While bullish traders endured mounting liquidations, short sellers benefited from the rapid decline. Blockchain research account Lookonchain identified an individual trader, ‘0xdd6a’, who initiated 20x leveraged shorts across major cryptocurrencies including BTC, ETH, SOL, XRP, and DOGE on Aster. This trader held a total position size of $26.5 million with $586,000 in unrealized profit.
The trader’s exposure included 48.37 million DOGE valued at $4.24 million, which accounted for nearly half of the unrealized gains and contributed $224,000 to overall profits as the token declined.
CoinGlass reported that leveraged long positions in Dogecoin dominated liquidations, drawing $7.32 million out of the total $7.82 million as the cryptocurrency faced renewed selling pressure.
In parallel, Whale Alert tracked the movement of major DOGE holdings, with 304,709,765 tokens valued at $27,045,644 transferred from an unknown wallet to Binance, signaling continued selling activity among large holders.
The convergence of heavy long liquidations, profitable short strategies, and significant whale movements underscores the volatility within Dogecoin trading during broad crypto market corrections.
