Sea May 28, 2025 ▪
4
Min read ▪ by
Dogecoin has just undergone a disturbance that goes beyond the usual volatility of the cryptography market. In an hour, the same has experienced a 200%liquidation imbalance, triggering a wave of losses on long positions. This unusual figure reveals much more than an erratic movement. It highlights the growing exposure of traders to relentless market mechanics. It is not an epiphenomenon, but a signal revealing latent tension, in a climate where consolidation often hides imminent ruptures.
Brief
- Dogecoin experienced a 200% liquidation imbalance in just one hour, which leads to $ 123,000 for long traders.
- The Doge price went from $ 0.232 to $ 0.2266 before stabilizing slightly about $ 0.2268 in the middle of the volume.
- A technical “cross cross” appeared, strengthening doubts about Dogecoin’s ability to start a real recovery without an external catalyst.
- The momentum observed on DOGE reflects a global trend also affecting Bitcoin, indicating the global instability of the cryptography market.
Sudden imbalance, symptoms of a tense market
While Dogecoin shows clear recovery signs, the crypto recorded a 200% liquidation imbalance in just one hour on May 27, creating instability in the derivative markets.
According to Coinglass data, Dogecoin has experienced a wave of massive liquidations on long positions. Merchants are betting for a long time on Dogecoin’s advances lost $ 123,000 in an hour.
This reversal surprised part of the market, in particular those who had anticipated a recovery after a technical rebound signal. The price suddenly increased from $ 0.232 to $ 0.2266, reversing the bullish sidewalks of the prospects had placed.
In the absence of a concrete catalyst, this correction acted as revealing current weaknesses on the market.
The movement triggered a chain reaction illustrating the conventional mechanisms of a poorly managed lever market:
- Forced liquidations: the rapid drop triggered from stop orders and the automatic margin calls leverages, exacerbating the sale pressure;
- Has the commitment: the overall negotiation volume decreased by 0.9%, falling to $ 1.32 billion, reflecting a temporary withdrawal from participants;
- Back to the average: after the stress peak, the price was slightly given to $ 0.2268, an increase of 1.06% over 24 hours, but without clear momentum;
- Lack of fundamental support: no fundamental signal or external event justified or supported a lasting recovery in the crypto prices at the moment.
This sudden sequence, although brief, illustrates the increased vulnerability of Dogine to the volatility of the derived market and the difficulty for investors to find solid references during a phase of technical doubt.
Technical consolidation and escape thresholds
Beyond the immediate impact, technical data suggest a consolidation phase which could precede a new trend break. Some consider the fluctuation in the Dogecoin price between $ 0,2200 and $ 0.2,300 as a consolidation phase for the assets.
In this configuration, the same oscillates in a narrow beach which, if it is maintained above $ 0.2255, could open the way to an attempt to break. It is therefore a central moment for technical traders who closely follow the reaction of cryptography prices at this intermediate level.
This congestion zone can either serve as a basis for recovery or report a lasting exhaustion phase.
Another important element is the appearance of a “Death cross”A technical indicator generally considered to be lower. Indeed, unless negotiation volumes or other growth indicators occur, the situation may not reverse.
This means that without clear fundamental support, in particular a significant increase in volume or a renewed social activity around Doge, the probability of a bullish reversal remains low.
In addition, the fact that Bitcoin also recorded a similar momentum of long -position liquidations suggests that the situation transcends the only Dogecoin. The global market seems hesitant and Doge here embodies an almost caricatured illustration.
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Diploma of Sciences Po Toulouse and holder of a Blockchain certification consultant issued by Ayra, I joined the Cointribuna adventure in 2019. Convinced of the blockchain potential This ecosystem in Constantie Evolution. My goal is to allow everyone to understand the blockchain and to seize the opportunities it offers. I strive every day to provide an objective analysis of adreity, to decorate market trends, to relay the latest technological innovations and to put into perspective the economic and societal En Marche Enjenes.
Non-liability clause
The points of view, the thoughts and opinions expressed in this article belong only to the author and must not be considered as investment advice. Do your own research before making investment decisions.
