TLDR
- Dogecoin maintained $0.40 level through major market turbulence
- Record-setting $86.29M liquidation event failed to break support
- Trading patterns show continued strength at current levels
- Volume analysis indicates strong spot market buying
- Technical indicators point to sustained market interest
December 9 marked a pivotal moment in the cryptocurrency markets as a wave of liquidations swept through trading platforms. While many digital assets faced substantial pressure, Dogecoin emerged as a noteworthy exception, maintaining its price level near $0.40.
Market data reveals the scale of the event, with $86.29 million in Dogecoin long positions facing liquidation. This represents the largest single-day clearout of leveraged positions since the peak of the 2021 bull market, highlighting the magnitude of the market movement.
Trading patterns on the DOGE/USDT pair show that buyers stepped in consistently at key support levels. The price action formed a series of higher lows on the 4-hour chart, suggesting sustained buying pressure despite broader market weakness.
Volume analysis indicates that spot market activity remained robust throughout the correction. This contrasts with many other digital assets, which saw spot volumes decline during the same period.
Order book data reveals substantial support clusters forming below current price levels. These accumulation zones suggest that buyers remain prepared to enter the market during price dips.
Technical indicators point to a consolidation phase around the $0.40 price point. Multiple tests of this level have shown strong buying interest, with each dip met by fresh demand.
The reduction in open interest following the liquidation event has created a cleaner market structure. Excessive leverage has been cleared from the system, potentially setting the stage for more sustainable price action.
Market depth analysis shows improved liquidity conditions following the correction. Bid-ask spreads have tightened, indicating increased market maker confidence at current price levels.
Trading data reveals an interesting divergence between futures and spot markets. While futures traders have taken more cautious positions, spot market participants have maintained their holdings.
Price action around key technical levels suggests the formation of a strong support base. Multiple touches of the uptrend line have been met with buying pressure, preventing any sustained moves lower.
The $0.47 price region has emerged as a notable resistance zone. Several attempts to break above this level have occurred, with each test providing information about current market dynamics.
Analysis of funding rates shows a reset to more neutral levels. This development has reduced the cost of maintaining long positions, creating more balanced market conditions.
Volume profile analysis indicates concentrated trading activity around current price levels. This suggests market participants have found a temporary equilibrium point.
Order flow data reveals consistent absorption of selling pressure. Large market orders have been met with corresponding buying interest, preventing sustained downside moves.
Trading patterns show decreased volatility following the liquidation event. At press time, Dogecoin trades at $0.40, maintaining its position above key technical support zones.
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