Dogecoin Suffers $1.85M Liquidation as Bulls Face 3,444% Imbalance

Dogecoin (DOGE) traders faced a major setback as the meme coin recorded $1.85 million in liquidations over just four hours, according to Coinglass data. The sharp drop in DOGE’s price triggered a massive liquidation imbalance, with long-position holders taking the brunt of the losses. Of the total liquidated value, only $52,750 came from short positions—highlighting a staggering 3,444% liquidation skew in favor of bears.

This unexpected market reversal came after DOGE surged to $0.167 the previous day, fueling bullish sentiment and prompting a wave of long trades. However, the optimism was short-lived as DOGE quickly tumbled 4%, wiping out millions in leveraged long positions. At the time of writing, DOGE is trading at $0.158, according to CoinMarketCap.

The rapid downturn highlights the extreme volatility of the crypto market as July begins with bearish momentum. Traders who anticipated a continued upward trend were caught off guard by the sudden sell-off, which has cast doubt on near-term price action. The significant disparity between long and short liquidations reveals how overleveraged bullish bets contributed to the swift correction.

As Dogecoin battles increased turbulence, investor confidence is being tested. The liquidation spike underscores the risks of leveraged trading in a market prone to sharp reversals. Analysts warn that unless a stable support level is established soon, further downside pressure may persist in the short term. With bearish sentiment growing, DOGE traders are bracing for continued volatility as the month unfolds.