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Dog-themed crypto Dogecoin experienced a 2,691% liquidation imbalance after a sharp market sell-off forced long traders betting on a price rise out of leveraged positions.
At the time of writing, Dogecoin was down 7.30% in the last 24 hours to $0.083 amid an ongoing broader crypto market sell-off. Rising expectations that the Fed might hike interest rates along with renewed inflation concerns proved a challenge for the bulls.
Dogecoin's drop caught traders betting on a price increase off guard. About $8.91 million of leveraged DOGE positions were liquidated over the past 24 hours, with $8.59 million coming from long positions and $319,190 from shorts, according to CoinGlass data. The percentage imbalance between long and short positions yields 2,691.19%.
Dogecoin retreated after the weekend's surge, which took DOGE to a high of $0.095. Consistent selling pressure pulled Dogecoin below the much-watched daily MA 200 at $0.088 to mark four straight days of drops.
The price of DOGE touched an intraday low of $0.083, a crucial support flagged by analysts for it to sustain a bullish outlook. If this support is lost, the next demand zone will be watched at $0.08.
Dogecoin went live on Solana this week following an integration through Sunrise Protocol, allowing for its accessibility on platforms including Raydium and Jupiter.
Crypto market in red
The broader crypto market fell ahead of key inflation releases, with a total of $569 million liquidated across crypto positions.
The majority of crypto assets in the top 100 saw significant losses, ranging between 2.61% and 12%. Robinhood-based memecoin Pons was down more than 25%.
The producer price index, a measure of wholesale prices and a gauge of pipeline cost pressures, rose 0.4% in August, in line with expectations. Investors will now look ahead to consumer price data due on Friday for clearer insights into the U.S. inflation picture and next week's Federal Reserve interest rate decision.
After being on hold throughout 2026, the Fed is expected to approve a quarter-percentage-point hike of its benchmark interest rate, though market pricing has been volatile. Traders slightly increased their bets on a rate increase following the PPI release, putting the odds close to 66%, according to the CME Group's FedWatch.