Newton Gitonga
Anyone who took a bullish bet on cryptocurrencies has endured a severe loss as Bitcoin (BTC) plunged to trade at $54,260 today, July 5, 2024.
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With total crypto liquidations skyrocketing to $675 million over the past day – the highest figure since the FTX crash – Dogecoin is among the leading altcoins feeling the most heat.
The top meme token has seen significant price declines over the last 24 hours, birthing various speculations in the crypto community.
Amidst the downside, a large-scale investor dumped 400 million Dogecoin tokens to Binance.
That saw the meme crypto surrendering the vital support level at $0.1, denting the prospects of near-term recoveries.
Whale loses trust in DOGE
According to Whale Alert, a Dogecoin holder moved tokens worth $41.08M, 400 million DOGE, to exchange Binance early today.
The whale still holds 379.08 million Dogecoin, worth approximately $36.59 million.
Further details show the address accumulated around 1 billion DOGE assets from Binance early in 2024.
Thus, the whale’s dump could be strategic. Nonetheless, the enormous transaction to a crypto exchange welcomed bearish sentiments.
Market players perceived the move as deteriorated confidence in DOGE’s near-term profitability potential.
However, the whale still has a significant amount of DOGE tokens.
The crypto market suffers record liquidations
The massive Dogecoin dump came as the cryptocurrency sector endured liquidations never witnessed since FTX’s collapse.
According to Coinglass, the previous day saw $675 million worth of crypto liquidated, with long positions suffering the most.
Notably, the most liquidation happened on Binance, with one trader losing $18 million.
Bitcoin recorded the highest number, with $184M in longs and $41M in short positions wiped from the market.
Ethereum came second as Solana closed the top three. Dogecoin was among the top 5 assets that saw the most liquidations over the past day.
Meanwhile, Mt. Gox and Germany have intensified the current bearish wave.
The defunct exchange Mt. Gox transferred Bitcoin worth billions amidst plans to compensate 2014 hack victims.
The move turned out to be a massive bearish challenge for BTC due to enormous selling activities from creditors.
Besides Mt. Gox, the latest selling pressure from the German government, which even attracted criticism from a member of parliament, dampened sentiments in the cryptocurrency market.
Dogecoin’s current price action
The immense downward pressure has seen DOGE losing the vital support zone at $0.1.
The meme token traded at $0.09526 during this writing, down 15% over the past day.
DOGE’s 24-hour trading volume is up 70%, indicating magnified selling by participants.
Dogecoin’s future open interest also plunged 14.88% to $503.97M.
Contrarily, the derivative volume jumped 117.45% to $3.28B. Also, the Relative Strength Index shows DOGE is within an oversold region.
That means possible market recoveries would see DOGE price bouncing back.
However, bears dominate the current market sentiments as experts forecast more Mt. Gox-initiated pain.
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