On April 12, Dogecoin suffered a significant financial blow. Over $16 million in long liquidations were reported. Many investors are now sceptical of this cryptocurrency.
Long liquidations happen when a trader’s position must close because there isn’t enough money to keep it going. Usually, this is caused by a big drop in the cryptocurrency’s value. In this case, it happened to Dogecoin.
Dogecoin’s value dwindled by 13% in 24 hours, according to analysis from CoinMarketCap, a popular crypto-trading website. Currently, Dogecoin’s value stands at $0.1721.
Experts predict the cryptocurrency’s value may continue to fall. This negative outlook, combined with increasing coin sell-offs, marks a difficult time for Dogecoin investors.
There are many factors contributing to Dogecoin’s decline. For instance, both the Relative Strength Index and the Money Flow Index are presenting declining trends.
The fall of Dogecoin mirrors a larger trend in the cryptocurrency market. After Bitcoin lost value, the whole market saw $860 million in trade positions liquidated. This affected almost 270,993 traders.
Many traders are now on the lookout for these value drops and are ready to exit their positions quickly. The uncertain atmosphere surrounding Dogecoin and other cryptocurrencies continues to create a market filled with potential pitfalls for investors.
Vocabulary List:
- Liquidations (noun): The process of converting assets into cash.
- Sceptical (adjective): Not easily convinced having doubts or reservations.
- Dwindled (verb): To become smallerweakeror less in number.
- Outlook (noun): A person.s point of view or anticipated future situation.
- Sell-offs (noun): A rapid selling of securitiesespecially in a financial market.
- Pitfalls (noun): Hidden or unsuspected dangers or difficulties.
