Dogecoin traders faced significant losses over the last 24 hours as the price of DOGE plummeted by 13.64%. Despite the optimistic growth seen in meme coins like Dogecoin in recent months, the sudden decline in its price caught many off guard. The decline was marked by multiple lower lows and lower highs, indicating a bearish trend in the market. However, some traders viewed this price drop as an opportunity to purchase DOGE at a discount.
The drop in the price of DOGE led to $20 million worth of long positions being liquidated, as indicated by Coinglass data. Additionally, the increase in percentage of short positions against DOGE suggested a growing bearish sentiment in the market. The velocity at which DOGE was trading also decreased significantly in the past few days, along with a decline in the number of active addresses on the Dogecoin network. These factors contributed to the downward pressure on the price of DOGE.
Despite the decline in price and decrease in trading activity, the token’s MVRV ratio remained low, indicating that most addresses were holding DOGE at a loss. This could further fuel selling pressure and potentially push the price of DOGE even lower in the near future. The overall sentiment around Dogecoin seemed to have shifted from optimism to caution, as traders navigated through the recent market volatility.