- Dogecoin traders suffered massive losses in the last 24 hours.
- Velocity and overall activity on the network also declined.
Dogecoin [DOGE] has been one of the few meme coins that saw the most growth over the past few months. After DOGE moved past the 20-cent mark, optimism around the memecoin was at an all-time high.
However, in the last few days, the price of DOGE took a massive hit. In the last 24 hours itself, the price of DOGE fell by 13.64%.
DOGE faces the heat
Even though a price correction this drastic was unprecedented, the token did show some signs of a potential downfall. After testing the $0.2287 price level on the 28th of March, DOGE started its journey to the bottom.
The meme coin exhibited multiple lower lows and lower highs during this period, establishing a bearish trend.
A CMF (Chaikin Money Flow) of 0.04 suggested that there is some buying pressure in the market, albeit relatively weak.
This indicated that money is flowing into DOGE, but not significantly enough to drive substantial price movements.
So, there may be a small cohort of traders who are looking at the recent decline in price as an opportunity to buy DOGE at a discount.
The RSI (Relative Strength Index) was 33.17 for DOGE at press time. This indicated that the price momentum was approaching oversold territory.
Source: Trading View
Looking at the data
Due to this decline in price, multiple traders faced losses. According to AMBCrypto’s analysis of Coinglass’ data, $20 million worth of long positions were liquidated in the last 24 hours.
Coupled with this, the percentage of short positions taken against DOGE had also grown over the last few days. This could further amplify bearish sentiment.
The velocity at which DOGE was trading at had declined materially in the last few days. This indicated that the frequency at which DOGE was being traded at had fallen.
Additionally, the number of active addresses on Dogecoin had declined, suggesting a waning interest in the network itself.
Realistic or not, here’s DOGE’s market cap in BTC’s terms
These factors could add more selling pressure, and may cause the price of DOGE to decline even further.
However, the token’s MVRV ratio remained low, indicating that most addresses were holding their DOGE at a loss at the time of writing.
Source: Santiment
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