The ongoing downturn in the cryptocurrency market has heavily impacted Dogecoin (DOGE). According to CoinGlass data, Dogecoin dominates the meme coin liquidation trend, having liquidated more than $4 million in just 24 hours. This significant statistic indicates DOGE’s strain in the context of broader market instability.
The liquidation of $4.92 million worth of DOGE, although smaller compared to Bitcoin’s $90.06 million, remains substantial for the meme coin. In total, 41,554,054 (41.5 million) DOGE have been liquidated, with long traders accounting for $4.87 million. This comes after the price of Dogecoin fell by 7.89% to $0.1121 in just 24 hours, marking its lowest price in one month and dropping more than 29%.
Read Also: Dogecoin’s 2024 Performance and Potential Ahead
Meme Coin Sector at a Tipping Point
The broader meme coin ecosystem is currently at a critical juncture, with no significant positive growth among the most capitalized coins. While PEPE also crossed over $4 million in liquidations, the fractional increase in the burning rate of Shiba Inu (SHIB) also declined to an 8,500% increase in the burn rate as a WS metaphor did not manifest. For this reason, the meme coin segment remains vulnerable to the overall market situation, according to which Bitcoin has sunk to $58,000.
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Market Expectations for Meme Coins
Dogecoin, along with other meme coins such as PEPE and SHIB, are expected to experience a strong rebound once they reach their low points. This potential rebound might be more prominent given the unique dynamics within the meme coin market. As these currencies continue to gain attention, investors and market analysts will keep a close eye on their future performance. Given the peculiar dynamics of the meme coin market, this possible bounce could be more pronounced.
Ultimately, Dogecoin’s recent liquidation data highlight the difficulty the meme currency sector encountered during a broader market collapse. However, the unique ecosystem foundations and market dynamics indicate that a significant recovery may be on the way. Investors should exercise care during this period of volatility, keeping an eye out for any rebound possibilities.
Read Also: Shiba Inu Dips 9% with New Support Range Identified as Market Faces $321M Liquidations in 24 Hours
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Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.