Coinspeaker
Dogecoin Tanks Under 10 Cents as Meme Coins Face Biggest Single-Day Crash
The world’s largest meme coin Dogecoin (DOGE) has crashed under 10 cents amid the broader market selloff in the crypto industry. As of press time, DOGE price is trading under 9% down at $0.0984 with its market cap plummeting under $14.5 billion. With this, Dogecoin has extended its weekly losses by more than 21%.
Over the last two days, Dogecoin traders have been facing major heat amid strong market liquidations. As per the current data on CoinGlass, the 24-hour liquidation for DOGE has crossed $11.89 million, of which, $10 million is in long liquidations and $1.89 million in short liquidations.
Liquidations occur whenever an exchange forcibly closes traders’ positions which could be due to factors like high market volatility, excessive leverage against the market trend, insufficient margin balance, etc.
In essence, a liquidation heatmap identifies price levels where significant liquidations are likely to occur. These levels often coincide with areas of high liquidity, indicating potential points of price movement. Thus, the heatmap serves to predict market direction and pinpoint support and resistance zones.
Based on current Hyblock data, liquidity is notably concentrated around $0.12 for DOGE. This suggests that increased buying pressure could drive the price of DOGE towards this level.
Courtesy: Hyblock
Should Dogecoin Investors Buy the Dip?
Some of the on-chain metrics show that it would be the right time for Dogecoin investors to buy the dip. The divergence of the daily active addresses suggests that it’s time to accumulate Dogecoin.
The Daily Active Addresses (DAA) metric compares the rate of price increase with blockchain activity. When the price appreciates more than DAA, it typically signals a sell opportunity.
Currently, the price-DAA ratio stands at an extremely positive 58.32%, indicating a significant divergence where price increase outpaces blockchain activity.
Courtesy: Santiment
This reading shows that participation in the Dogecoin network is growing faster. If this situation continues further, Dogecoin would present a buying opportunity.
Moving forward, the coin’s price may stabilize around the $0.10 region. Nevertheless, there is a possibility that market participants could begin accumulating the coin in the upcoming weeks.
Meme Coin Sectorial Selloff
The broader sell-off in the cryptocurrency market has hit the meme coin sector the most. All of the top ten meme coins tanked anywhere between 15-20% earlier today amid the news of the German government sell-off and Mt.Gox repayments. The losses have subsided currently at the press time.
Dogecoin Tanks Under 10 Cents as Meme Coins Face Biggest Single-Day Crash
