My crypto people! 🚀 Did you see the bomb that Dogecoin dropped? If you're not watching it, the photo says it all: the market is doing an epic level cleanup, and Doge got caught off guard. Hold on because things just got heated 🔥.
December 5th was a day of terror for leveraged traders (those who invest with borrowed money, a danger!). In just one day, the entire crypto market liquidated $491 million dollars. Half a billion flying! That's a 75% increase in daily liquidations. 🤯 And what did they take? Most of it, $419 million, were long positions (people betting that the price would go up). The market told them: "Thanks for participating, but no!".
Here comes what interests us: Dogecoin ($DOGE) was one of the most affected. When the market gets nervous, those who are afraid run away from "high-risk" assets like memecoins, and Doge is the king of that field. What happens? There is a "liquidation spiral": if you get liquidated, you have to sell quickly, which further lowers the price, leading to more people getting liquidated, and it becomes a vicious circle! 😵💫
Analyzing the Macro Chart of Doge.
The Trend is Clear (Blue Line): Since 2014, Doge has followed a support line (the blue line) that acts as a floor. Every time it touches that line, boom, it starts a new bullish cycle. Look at the yellow arrows: from 2017 to 2020 it made a rally brutal, touched the line again, and from 2021 to 2024 (the current cycle), it made another incredibly similar movement.
The Current Movement (The Yellow Arrow to the Right): The chart is screaming at us that the pattern is repeating to the millimeter. If this macro pattern holds, the bullish trend (the upward yellow arrow) still has room to run, and the price is projected to touch epic figures like $10 or more! 🤯 But to get there, it has to break the resistance.
The Detail of the News: The liquidations we saw on December 5th are just short-term noise in the grand scheme of things (the macro chart). Those red drops and downward pressure we see on the current chart, but as long as the price remains above that blue trend line, the big bullish play is still active. The drop in Dogecoin's volume in 24 hours (a 2.34% decrease) means fewer people buying to absorb the selling, making the price drop easier. Less liquidity, more volatility!
The Summary of the Story: The market is bouncing out impatient traders and those using too much leverage. It's a necessary "cleanup" to make the foundations stronger. The macro analysis tells us that the Doge party is not over, but these liquidations remind us that in crypto, volatility is the law, and you need to have nerves of steel! 🥶
How far can the Doge spring be tightened before it jumps to the next epic level? Are you buying this dip or waiting for it to go lower? 🧐$DOGE
