Dogecoin (Doge) prices have been tapering since August 17th, losing about 9% of its value in the past three days.
As the token slides, futures traders who opened their positions by betting on the rally went into losses. Longer memecoin traders could be at risk of further declines as new demand remains tamped down.
The decline of Doge causes a long liquidation
Doge’s recent price drop has been exacerbated by the broader market DIP, causing a long wave of liquidation in the futures market. With each Coinglass, this was a total of $10 million over the last 24 hours as Meme Coin expands its decline.
About Token TA and Market Updates: Want more token insights like this? Sign up for Editor Harsh Notariya’s daily crypto newsletter.
Moreso yesterday shows that the long liquidation control of Doge futures rose to 98%, with most liquidated positions being a long bet.
Liquidation occurs when the value of an asset moves against the trader’s position. In such cases, the trader’s position will be forced to be closed due to insufficient funds to maintain.
A long liquidation occurs when the price of an asset falls above a threshold, and traders betting on price increases will evict the market.
Excessive losses from these liquidation can weaken market sentiment between Doge holders and futures traders, leading to further sales. This could deepen the decline of memecoin and increase downward momentum in the short term.
Doge buyers lose steam
At the time of writing, Doge’s relative strength index (RSI) struggles below 50 neutral lines, supporting this bearish outlook. At 46.36, it reflects declined buy-side activity among market participants.
The RSI indicator measures the market conditions for asset acquisitions and overselling. Typically, RSIs above 70 indicate that assets may be over-acquired (potentially overvalued) and paid for rebounds. Conversely, values under the age of 30 suggest that it may be oversold (potentially undervalued) and focus on bullish reversals.
At 46.36, Doge’s RSI shows weakening bullish momentum. It suggests that buyers are struggling to maintain control amid recent sales, and if this continues, the meme coin could fall to $0.1758.
Meanwhile, a rebound in purchasing pressure could push the price up by $0.2347.
Postdogcoin bullish traders first appeared in Beincrypto as long liquidation dominates.
