Exploring Dogecoin, SHIB, and PEPE’s next steps after crypto liquidations
  • Bitcoin Drops Below $60,000, Market Fear
  • The meme coin market has seen a decline in popularity recently, but one candidate seems to be catching investor interest.

Bitcoin in the last 36 hours [BTC] Prices fell 9% from $58.8k to $55.5k before rebounding 6% to reach $56.8k at the time of writing. This volatility led to a large amount of crypto liquidation, with long positions taking an even bigger hit.

The Bitcoin price drop was caused by a number of factors. One of the factors was the news that the German government was selling BTC. Another was that Mt. Gox transferred $2.7 billion worth of BTC to a new address.

Given the scale of this volatility, crypto liquidations are likely to ease over the next few days as the market needs time to build up liquidity and then act to unload it.

The meme coin industry has not been immune to this, having been one of the biggest gainers in late May but has been on a downward trend in recent weeks.

The bloody battle is currently at a standstill

Cryptocurrency Liquidation Coinglass

sauce: Coin Glass

According to Coinglass data, Between July 4 and 5, long positions totaling $750.55 million and short positions totaling $198.66 million were liquidated. Liquidation refers to the forced closure of traders’ positions in the futures market when their account margin is no longer sufficient to support their open positions.

Conversely, when a position is closed, a market order is introduced in the opposite direction to the open position before liquidation, thus causing a liquidation cascade due to the effect of a sudden price drop causing a surge in long liquidations.

Large-scale crypto liquidation in this way could be beneficial for the market, clearing out over-leveraged traders and paving the way for spot-driven price movements, reducing the impact of speculation.

Pepe [PEPE]Bitcoin, the third-largest meme coin by market cap, may benefit from the recent wave of sell-offs.

Major meme coins are in poor condition, with one exception

Pepe Liquidation Heat Map

sauce: High Block

AMBCrypto found that in PEPE’s liquidation heatmap, the majority of liquidation levels disappeared in the $0.000077 to $0.0000095 region, which has been increasing since mid-May. To the north, the $0.000014 zone could be the next magnetic zone for the altcoin price.

AMBCrypto Analysis of Dogecoin [DOGE] Shiba Inu [SHIB] The two meme coins revealed liquidation levels concentrated further south.

Therefore, a recovery for DOGE or SHIB may require a longer time and a more severe correction. Although Shiba Inu has shown bullish flags on higher timeframes, it may be PEPE that recovers the quickest from its recent losses.


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PEPE 1 Day TradingView

PEPE/USDT. Source: TradingView

PEPE bulls must defend the $0.00000796 to $0.0000089 area to keep bullish expectations on the higher timeframes alive. Recent cryptocurrency liquidations have created panic in the market, but there are hopes that a price recovery may begin in July.

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