Dogecoin Price Drops: Accumulation Continues Despite Market Volatility
Impact of DOGE’s Volatile Weekend on Your Holdings
The cryptocurrency Dogecoin (DOGE) has experienced a price drop in the last 24 hours, leading to the liquidation of some long positions. This decline has eaten into some of the gains from last weekend and triggered a wave of long liquidations.
DOGE Loses Value
The leading meme coin Dogecoin has lost recent market price gains according to data from Coinglass, triggering a wave of liquidations among leveraged long traders. According to the data provider, the long liquidations on the coin’s futures market amounted to a total of $2.02 million USD on January 21.
It was reported that the value of DOGE increased by 10% over the weekend after social media giant X (formerly Twitter) created a special account for its yet-to-launch payment feature. However, as the excitement waned, market participants who had invested in the meme coin began to sell, leading to a price drop. At the time of reporting, DOGE was trading at $0.083, representing a 2% decline in the last 24 hours, according to data from CoinMarketCap.
DOGE Accumulation Continues
Despite the slight setback in the price of DOGE, coin accumulation continued, as evidenced by the data from the 12-hour chart. For instance, the key momentum indicators, the Relative Strength Index (RSI) and the Money Flow Index (MFI), were above their respective midlines at this point. With RSI and MFI values of 52.94 and 50.89 respectively, DOGE accumulation exceeded sales on the spot market.
Decline in Profitable Supply
Since the start of the year, DOGE has experienced a value loss of 13%. Due to this low price action, some of its holders have slipped into losses. According to data from Santiment, the percentage of the total DOGE supply being held in profit has fallen from 77% to 58% since January 1. At the beginning of the year, 104 billion DOGE coins were held in profit. At the time of reporting, only 79 billion DOGE coins were in profit.
The recent price movements of DOGE are a clear example of the volatility of cryptocurrencies. It’s important that you as an investor always stay up-to-date and carefully monitor your investments. Remember that the crypto market is highly volatile and that price fluctuations can present both opportunities and risks.
Sources: Coinglass, CoinMarketCap, Santiment.
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