Dogecoin (DOGE) Loses Recent Gains, Prompting Wave of Liquidations
Dogecoin, the leading meme coin, has experienced a decline in its market price, resulting in a surge of liquidations among leveraged long traders. According to data from Coinglass, long liquidations in DOGE’s futures market totaled $2.02 million on January 21st.
Despite a recent rally of 10% over the weekend, fueled by the anticipation surrounding social media giant X’s new payments feature, DOGE’s price began to decline as market participants started selling. As a result, DOGE is currently trading at $0.083, marking a 2% drop in the last 24 hours.
Continued Coin Accumulation Despite Price Drawback
Despite the slight setback in DOGE’s price, the accumulation of the coin has persisted, as indicated by its key momentum indicators. The Relative Strength Index (RSI) and Money Flow Index (MFI) both remained above their center lines, with respective values of 52.94 and 50.89. Additionally, the Chaikin Money Flow (CMF) showed liquidity inflow into the market, with a value of 0.07.
This ongoing accumulation is further supported by the Aroon Up Line, which stood at 78.57 at the time of writing. The Aroon Up Line serves as an indicator of trend strength and potential reversal points in a cryptocurrency’s price movement.
Decline in Supply Held in Profit
Since the beginning of the year, DOGE has experienced a 13% decline in value, leading to losses for some of its holders. According to data from Santiment, the percentage of DOGE’s total supply held in profit has dropped from 77% to 58% since January 1st. This decrease represents a reduction from 104 billion DOGE coins held in profit to the current 79 billion DOGE coins.
It is important to note that while this decline may have negative implications for existing DOGE holders, it is not indicative of the overall market sentiment towards the coin.
In conclusion, Dogecoin’s recent market price drop has prompted a wave of liquidations among leveraged long traders. Despite this setback, the accumulation of DOGE coins continues, supported by key momentum indicators. Additionally, the decline in supply held in profit poses challenges for some DOGE holders. However, the overall market sentiment towards DOGE remains uncertain, and its future performance will be worth monitoring.
Analyst comment
Neutral news. Short-term decline in DOGE’s market price led to liquidations. Accumulation of the coin and positive momentum indicators suggest ongoing support. Decline in supply held in profit may challenge some holders. Overall market sentiment towards DOGE remains uncertain, future performance worth monitoring.
