Market Turbulence and Dogecoin (DOGE)

The market turbulence has continued to weigh down Dogecoin (DOGE) and the top altcoins. As of press time, Dogecoin was trading at $0.1745, down by 5.85% in 24 hours, per data from CoinMarketCap. This price drawdown has also triggered an unusual liquidation imbalance that has generally affected long traders more.

Dogecoin Liquidation Outlook

Liquidations of DOGE have shown a unique trend over the past few weeks as market volatility intensifies. Per data from CoinGlass, Dogecoin has seen over $23.65 million in liquidations over the past 24 hours.

Of this, $19.13 million in liquidations were recorded by long traders, amounting to $109,251,856.08 DOGE within the period. Short trader liquidations, on the other hand, were at $4.52 million.

It is not uncommon for an altcoin as volatile as Dogecoin to experience this liquidation imbalance. While the long-term market continues to showcase optimism, the DOGE price has historically moved against it. With a seven-day drop of 20.5% and a year-to-date (YTD) drawdown of 46%, hopes for a decisive rebound remain low.

DOGE whale activity has remained limited in the past few weeks, reflecting the broader market’s cautiousness.

DOGE Positive Triggers to Watch

Amid the broader bearish trend, Dogecoin has a couple of catalysts that could fuel its overall price rebound.

First, its correlation with Bitcoin serves as a significant support. While DOGE has faced a steeper slump compared to Bitcoin, a boost in the latter could initiate a broader market rally.

Additionally, a Dogecoin ETF product forms a substantial tailwind for the digital currency. Top asset managers, including Grayscale and Bitwise, are anticipating this DOGE ETF product.

According to Bloomberg analysts, Dogecoin has relatively high odds of approval, leading long traders to remain optimistic about its potential rally in the long term, despite current sell-off pressures.