DOGE sees high liquidations as meme coin sector bleeds heavily

Dogecoin's (DOGE) sharp decline earlier on Tuesday wiped off nearly $60 million from the crypto market as tokens in the meme coin sector struggled with huge losses.

DOGE liquidations nears that of Bitcoin

Dogecoin long traders took a heavy hit on Tuesday as DOGE's 18% dive within 3 hours triggered long liquidations worth about $60 million. This marks DOGE's largest daily liquidation since May 2021. As a result, DOGE open interest (OI) declined by 11% in the past 24 hours.

The increased DOGE liquidations are quite notable, considering they approached levels usually seen in Bitcoin and Ethereum, which have larger market caps and trading volumes.

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DOGE descent may have been fueled by whales gradually reducing their holdings. According to data from IntoTheBlock, the percentage of DOGE held by addresses owning more than 0.1% of its supply has reduced from 45% to 41%. In contrast, the holdings of retailers and mid-sized investors have grown.

The $0.109 price level may prove a critical support for the top meme coin as it marks its highest accumulation zone — investors purchased over 43 billion DOGE at an average price of $0.109.

DOGE Global In/Out of the Money

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Other tokens in the meme sector share in the losses

The crypto market downturn has highly impacted the entire meme sector, down more than 16% on Tuesday. Some of the significant losses in the sector include Solana-based dogwifhat (WIF), which has decreased by over 20% in the past 24 hours. Base meme coin BRETT also took a 16% dive, extending its weekly losses to 20%.

Notably, MAGA, also known as the TRUMP meme coin, saw losses of about 20% after a report from Pirate Wires alleged that Republican Presidential candidate Donald Trump is launching an official token with the ticker "DJT." However, the former President has yet to confirm the rumors.

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Meanwhile, BEER meme coin, launched less than a month ago, continued plunging as it suffered a 48% decline in the past 24 hours, extending its weekly losses to over 80%. The accelerated decline is likely spurred by several reports of insiders or team members steadily dumping the coin.