Dogecoin Loses 5%:Overnight Is a Deeper Liquidation Wave Coming?
Dogecoin drops 5 percent to $0.125, dropping below $0.126. Long liquidations swell with the memecoin following wider crypto flimsiness and technical collapse.
On Tuesday, Dogecoin fell about 5% and fell beneath a critical support level. The action caused massive long liquidations in derivatives markets.
The digital asset fell from $0.128 to $0.125. The near-support at about $0.126 failed after the third attempt, and selling pressure increased with the loss of positions.
The failure occurred during high-volume trading, according to CoinDesk. Previously occurring support between$ 0.126 and $0.127 has changed to resistance, and any rebound is currently met with stiff supply in the new resistance zone.
Liquidation Cascade Fuels Sharp Decline
The sell-off was not associated with any particular news; it was a matter of positioning and liquidation pressure. DOGE was unable to hold its consolidation floor.
After falling below the price of $0.126, the speed of selling increased. Late longs were offside on several exchanges, and forced exits increased the downward impetus to the utmost extent.
The memecoin reflected overall crypto market vulnerability, causing losses in the course of the session. DOGE did not display a lot of relative strength against peers.
Volume increased abruptly into the breakdown, which implies forced liquidation action, as opposed to a normal shallow dip.
You might also like: CFTC Chair Michael Selig Signals Lighter Crypto Oversight Under ‘Future Proof’ Plan
Technical Breakdown Confirms Bearish Shift
DOGE dropped out of the area of $0.1258 to 0.1260, which underlines a bearish turn in structure. The sellers defended rebounds aggressively at or around 0.125.
Price is approaching $0.123 on the downward slope and has not moved since reaching almost 0.125. The asset is languishing below past support.
The traders determined the near-term critical level of $0.124, and trading in that area may stabilize the situation. A downward break will lower it to additional losses at $0.122.
The market will have to go back to $0.126 to 0.127 to relieve the immediate downward pressure. In the meantime, the technical picture is bearish.
When $0.124 does not hold, the momentum will continue to the lower level with the aim of hitting $0.123-0.122. Bears now hold the price action.
The post Dogecoin Loses 5%:Overnight Is a Deeper Liquidation Wave Coming? appeared first on Live Bitcoin News.
You May Also Like
How do I teach myself real estate? A practical self-study roadmap
USDC Treasury mints 250 million new USDC on Solana
