- After an 18% decline, DOGE expects long liquidations of around $60 million.
- The $0.109 level may provide support for DOGE according to on-chain statistics.
- The meme coin market is down over 16% as major losses are sustained by WIF, BRETT, and MAGA.
A significant drop in Dogecoin’s (DOGE) value earlier on Tuesday caused approximately $60 million to be lost from the cryptocurrency market as tokens in the meme coin industry experienced significant losses.
Bitcoin’s liquidity is close to DOGE’s.
Tuesday saw a significant loss for Dogecoin long holders as DOGE’s 18% decline in just three hours led to long liquidations totaling about $60 million. Since May 2021, this represents DOGE’s largest daily liquidation. Consequently, over the previous day, DOGE open interest (OI) decreased by 11%.
Given that the DOGE liquidations have risen to levels often observed in cryptocurrency markets with higher market capitalizations and volume of trade, this is extremely noteworthy.
It’s possible that whales steadily decreasing their holdings contributed to DOGE’s decline. IntoTheBlock data indicates that the proportion of DOGE owned by addresses that possess more than 0.1% of its supply has decreased from 45% to 41%. On the other hand, mid-sized investors’ and merchants’ stakes have increased.
Since it represents the top accumulation zone for the top meme coin, $0.109 may prove to be a crucial support level. At this average price, buyers have bought almost 43 billion DOGE.
The losses are shared by other coins in the meme industry
With the meme industry falling more than 16% on Tuesday, the crypto market drop has had a significant effect on it all. Among the notable declines in the industry is dogwifhat (WIF), based in Solana, which has dropped by more than 20% in the last day. Additionally, base meme coin BRETT fell 16%, increasing its weekly losses to 20%.
Notably, following a report from Pirate Wires claiming that Republican presidential nominee Donald Trump is issuing an official token with the ticker DJT, MAGA, commonly known as the TRUMP meme currency, witnessed losses of almost 20%. The former president has not officially addressed the rumors, though.
Launched less than a month ago, BEER meme coin continued to plummet, losing 48% of its value in the last day alone, bringing its weekly losses to above 80%. It’s possible that multiple tales of insiders or team members gradually selling the coin have hastened the slide.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
