Dogecoin Faces 200% Liquidation Imbalance Amid Sudden Price Dip

Dogecoin (DOGE) experienced a sharp wave of liquidations following a spike in price volatility, wiping out long positions and creating a 200% liquidation imbalance. According to CoinGlass, traders who expected a DOGE recovery lost over $123,000 in the last hour alone. The price of Dogecoin dropped from $0.232 to $0.2266, catching bullish traders off guard and fueling bearish short-term momentum.

This market shift has led to a slight decrease in trading volume, now down 0.9% to $1.32 billion. Despite the drop, DOGE has seen a modest rebound and is currently trading at $0.2268, marking a 1.06% gain over the past 24 hours.

Analysts see the recent price movement within the $0.2200–$0.2300 range as a potential consolidation phase. A sustained hold above $0.2255 could pave the way for a breakout. However, the key resistance at $0.27 remains a critical level for a continued bullish rally.

The liquidation trend isn’t isolated to DOGE. Bitcoin has also seen similar pressure on long positions, indicating a broader market sentiment shift. Dogecoin's earlier death cross, as noted by U.Today, signaled this downturn. Without a boost in trading volume or on-chain growth, a sustained recovery remains uncertain.

Still, optimism persists among traders who believe a breakout above $0.27 could reignite Dogecoin’s momentum. Until then, the meme coin’s future hinges on market sentiment and broader crypto trends. Investors are advised to watch key resistance levels and volume patterns for signs of a stronger rebound.