In the last 24 hours, Dogecoin has fallen below 10 cents, and other meme coins have suffered a similar fate as well.
The broader market selloff in the crypto industry has resulted in the world’s largest meme coin, Dogecoin (DOGE), plummeting to under 10 cents. The DOGE price is currently at $0.0984, a decline of less than 9% as of press time, and its market capitalization has plummeted to under $14.5 billion. This has resulted in a weekly loss of over 21% for Dogecoin.
In the past two days, Dogecoin merchants have encountered significant pressure due to the robust market liquidations. Based on the most recent data from CoinGlass, the 24-hour liquidation for DOGE has exceeded $11.89 million. Of this amount, $10 million is in long liquidations, and $1.89 million is in short liquidations.
Whenever an exchange forcibly closes traders’ positions, liquidations occur. This can result from factors such as high market volatility, excessive leverage against the market trend, or lack of margin balance.
A liquidation heatmap identifies price levels at which substantial liquidations are likely to occur. These levels frequently indicate Potential price movements, which often correspond with regions of elevated liquidity. Consequently, the heatmap is designed to anticipate the market direction and identify areas of support and resistance.
Liquidity for DOGE is significantly concentrated around $0.12, according to the most recent Hyblock data. This implies that the price of DOGE may be influenced by heightened purchasing pressure and may ultimately reach this level.
Is it advisable for Dogecoin investors to purchase the dip?
Some of the on-chain metrics indicate that it would be an appropriate moment for Dogecoin investors to purchase the dip. The divergence of the daily active addresses suggests it is time to accumulate Dogecoin.
The Daily Active Addresses (DAA) metric correlates the rate of price increase with blockchain activity. A sell opportunity is typically indicated when the price increases beyond DAA.
The price-DAA ratio is an exceptionally positive 58.32%, suggesting a substantial divergence in which the price increase exceeds blockchain activity.
This reading demonstrates that the Dogecoin network is experiencing a rapid increase in participation. Dogecoin would offer a purchasing opportunity if this situation persists.
The price of the coin may stabilize at approximately $0.10. However, market participants may begin to accumulate the coin in the future weeks.
Sectoral Selloff of Meme Coin
The meme coin sector has been the most severely affected by the broader selloff in the cryptocurrency market. Earlier today, the news of the German government selloff and Mt.Gox repayments caused all of the top ten meme currencies to experience a decline of 15-20%. At the time of publication, the losses have diminished.