Dogecoin price fell to $0.11 on June 19, its lowest in over 100 days dating back to March 1 2024, with over $60 million Long DOGE positions liquidated in the last 24-hours, here’s what could happen next.
Dogecoin June 2024 Losses Hits 30% Amid Widespread Liquidations
The cryptocurrency market correction phase intensified further on Tuesday, June 18. As often observed during periods of intense market FUD (Fear, Uncertainty, and Doubt), crypto investors are rapidly exiting memecoins and redirecting capital toward sectors that are more resilient and less sensitive to social sentiment trends.
Unsurprisingly, Dogecoin, the world’s largest memecoin by market capitalization, experienced considerable downsizing in June 2024 as investors grew increasingly skittish.
The Trading chart above shows DOGE price action for the first 20-days in June 2024. It depicts how Dogecoin has declined by a whopping 30%, from the opening price of $0.16 on June 1 to hit $0.1 on June 18, before rebound mildly toward $0.12 at the time for publication on June 19.
Looking beyond the price action, the recent trends in the derivatives markets provide clear insights into the market events that catalyzed the latest DOGE downswing this week.
The Coinglass’ Liquidations chart below tracks the total value of liquidated or force-closed futures contracts within a give period.
Since the start of the week, over $60 million worth of DOGE futures contracts have been liquidated, with bull traders suffering over 90% of those losses.
As depicted above, $44.21 LONG contracts were closed on June 17 before another 18 million got wiped out on Tuesday, June 18. Meanwhile, less than $2 million in SHORT contracts were closed within the same timeframe.
When there are LONG contract liquidations that exceed the SHORTs by such a wide margin, it signals that the dominant sentiment within the DOGE markets is dominantly bearish. With the low conviction of a quick rebound, bull traders are now opting to close out their positions and exit rather than make covering purchases.
This explains why the Dogecoin price has performed below the market average, reinforcing the bearish narrative that investors are disproportionately exiting the mega-cap memecoin scene amid the broader crypto market correction phase.
Dogecoin Price Forecast: Bears Eyeing $0.10 Breakdown
At the time of writing, Dogecoin is currently trading around $0.12 per coin. However, if the bearish trend among derivatives traders persists, DOGE bears could begin to set new targets for a potential breakdown below the $0.10 mark in the days ahead.
However, the IntoTheBlock GIOM data shows that this bearish attempt to break below $0.10 will not be a cakewalk for the bears.
As seen below, Dogecoin bulls could mount an imposing support buy-wall around the $0.11 territory, where over 219,000 DOGE holders had acquired 41.8 billion DOGE in the past.
To avoid slipping into a net-loss position, those investors could swing into action any moment to make covering spot purchases. If coordinated, that buying frenzy could trigger an instant Dogecoin price rebound toward the $0.13 level.
But if the bearish sentiment within the broader crypto market intensifies, DOGE could be at risk of losing the vital $0.10 support.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
