Dogecoin liquidation imbalance jumps 3,401% as traders lose millions of crypto

Dogecoin Liquidation Imbalance has shocked the crypto market, soaring by an astonishing 3,401% in just 24 hours. According to data from CoinGlass, over $21.71 million in long positions were liquidated, catching overleveraged DOGE bulls completely off guard.

This drastic shift has put the spotlight on the meme coin once again, but not for the usual reasons. The sudden liquidation imbalance highlights growing bearish pressure in the Dogecoin ecosystem.

While the entire crypto market is undergoing a period of consolidation, DOGE appears to be leading the downside charge, suffering a sharper price decline than Bitcoin and other large caps.

The ongoing Dogecoin Liquidation Imbalance is raising serious questions about the stability of leveraged trading in the meme coin market. As the Dogecoin Liquidation Imbalance continues to grow, traders are reevaluating their risk exposure, especially with DOGE teetering near critical support levels.

Analysts warn that the Dogecoin Liquidation Imbalance could spiral further unless bullish sentiment returns quickly, triggering even more liquidations. Still, some seasoned investors view this sharp Dogecoin Liquidation Imbalance as a golden accumulation window, betting that a reversal could soon follow.

For now, the market remains on edge, watching whether this Dogecoin Liquidation Imbalance turns into an opportunity or a deeper correction.

Dogecoin liquidation imbalance: A $22 million wipeout shakes long traders

At the center of the Dogecoin Liquidation Imbalance is a brutal liquidation wave that saw total losses reach $22.33 million. Long-position traders bore the vast majority of this pain, while shorts only accounted for a relatively small $625,930 in liquidations.

“This is a textbook case of overexposure,” said James Check, lead on-chain analyst at Glassnode. “Traders rushed in anticipating another breakout, only to get crushed by thin order books and declining volume.”

As of press time, Dogecoin is trading at $0.2049, down 8.3% over the last 24 hours, compared to Bitcoin’s more moderate 2.59% decline. The disproportionate losses underscore the unique volatility and leverage habits in the meme coin segment.

Interestingly, even as the Dogecoin Liquidation Imbalance deepens, trading activity has surged. Total volume for DOGE has risen by 53.33%, now sitting at $2.16 billion, a signal that traders are far from exiting the arena.

“High volume during a price drop isn’t always bearish,” explains Yann Allemann, co-founder of analytics firm Glassnode. “It could mean buyers are stepping in to accumulate, especially those who missed earlier entries.”

This uptick in volume could suggest that while many long traders were liquidated, fresh positions are now entering the market, potentially laying the groundwork for a price recovery.

Critical $0.20 level under threat – Dogecoin Liquidation Imbalance

The sharp Dogecoin Liquidation Imbalance has pushed DOGE to the edge of its key psychological support at $0.20. If bearish sentiment persists and no strong buy pressure emerges, this level may soon be breached, potentially opening the door for further losses.

“Support at $0.20 is make-or-break for Dogecoin in the short term,” said Michaël van de Poppe, founder of MN Trading. “If that fails, $0.18 or even lower becomes the next possible zone.”

Still, DOGE has proven time and again that community-driven momentum can turn things around just as quickly as they spiral down.

Dogecoin typically mirrors Bitcoin’s price trajectory, albeit with exaggerated moves. If Bitcoin consolidates and begins to recover, there’s a strong chance DOGE could follow suit, especially with its rising volume signaling renewed interest.

For the Dogecoin Liquidation Imbalance to reverse, bulls will need to generate meaningful upward pressure, not just speculative trading. That means stronger buying momentum and more organic inflows, rather than overleveraged bets.

The recent Dogecoin Liquidation Imbalance has clearly shaken the market, wiping out millions and testing investor confidence. But in true DOGE fashion, volatility could present new opportunities. If volume remains high and key support holds, a rebound may be closer than it seems.

“Dogecoin thrives in extremes—this isn’t the first liquidation scare, and it won’t be the last,” added Luc Lammers, analyst at IntoTheBlock. “What matters now is whether the bulls have the conviction to step back in.”