Dogecoin (DOGE) Price Prediction: Bears Eyeing $0.10 Breakdown as June 2024 Losses Hit 30% Amid Widespread Liquidations

The cryptocurrency market correction phase intensified further on Tuesday, June 18. As often observed during periods of intense market FUD (Fear, Uncertainty, and Doubt), crypto investors are rapidly exiting

Dogecoin price plummeted to $0.11 on June 19, marking its lowest point in over 100 days since March 1, 2024. This sharp decline coincided with the liquidation of over $60 million in Long DOGE positions within the last 24 hours. Here's a closer look at the recent events and what could unfold next in the markets.

Dogecoin June 2024 Losses Hit 30% Amidst Widespread Liquidations

The cryptocurrency market correction phase escalated further on Tuesday, June 18. As frequently observed during periods of intense market FUD (Fear, Uncertainty, and Doubt), crypto investors are rapidly pivoting their strategies. They are quickly exiting memecoins and redirecting capital toward sectors that are more resilient and less susceptible to trends in social sentiment.

Unsurprisingly, Dogecoin, being the world's largest memecoin by market capitalization, encountered a substantial downsizing in June 2024 as investors became increasingly skittish.

The Trading chart above showcases DOGE price action for the first 20-days in June 2024. It highlights how Dogecoin has sharply declined by a whopping 30%, from the opening price of $0.16 on June 1 to hit $0.1 on June 18, before rebounding slightly toward $0.12 at the time for publication on June 19.

Delving deeper beyond the price action, the recent trends in the derivatives markets offer clear insights into the market events that catalyzed the latest DOGE downswing this week.

The Coinglass’ Liquidations chart below tracks the total value of liquidated or force-closed futures contracts within a given period.

Since the start of the week, over $60 million worth of DOGE futures contracts have been liquidated, with bull traders suffering over 90% of those losses.

As depicted above, $44.21 LONG contracts were closed on June 17 before another 18 million got wiped out on Tuesday, June 18. Meanwhile, less than $2 million in SHORT contracts were closed within the same timeframe.

When there are LONG contract liquidations that exceed the SHORTs by such a wide margin, it signals that the dominant sentiment within the DOGE markets is largely bearish. With the low conviction of a quick rebound, bull traders are now opting to close out their positions and exit rather than making covering purchases.

This explains why the Dogecoin price has performed below the market average, reinforcing the bearish narrative that investors are disproportionately exiting the mega-cap memecoin scene amid the broader crypto market correction phase.

Dogecoin Price Forecast: Bears Eyeing $0.10 Breakdown

At the time of writing, Dogecoin is currently trading around $0.12 per coin. However, if the bearish trend among derivatives traders persists, DOGE bears could begin to set new targets for a potential breakdown below the $0.10 mark in the days ahead.

Nevertheless, the IntoTheBlock GIOM data shows that this bearish attempt to break below $0.10 will not be a simple task for the bears to achieve.

As seen below, Dogecoin bulls could mount an imposing support buy-wall around the $0.11 territory, where over 219,000 DOGE holders had acquired 41.8 billion DOGE in the past. To avoid falling into a net-loss position, those investors could swiftly make covering spot purchases any moment. If coordinated, that buying frenzy could trigger an instant Dogecoin price rebound toward the $0.13 level.

But if the bearish sentiment within the broader crypto market intensifies, DOGE could be at risk of losing the vital $0.10 support.