This comes as DOGE prices plummeted over 10%, reflecting a broader market sell-off and a prevailing bearish sentiment in the crypto market.

During Asian trading hours, the price of DOGE witnessed a significant decline before briefly experiencing a recovery alongside major tokens and bitcoin. Nonetheless, the overall crypto market sentiment remains negative, leading to a 3.4% drop in the CoinDesk 20 Index (CD20) over the past 24 hours.

Interestingly, DOGE futures fared worse than their BTC counterparts, with long bets on BTC losing $47 million during the same period. Ether (ETH) also faced a substantial loss in bullish bets, shedding $76 million. In total, crypto longs saw a loss exceeding $440 million as traders took profits and dollar strength weighed on the market.

Lucy Hu, a senior analyst at Metalpha, highlighted that the pullback in the meme coin market this month is closely tied to the pressure faced by bitcoin prices. Investors have been diverting from risky assets to less risky alternatives due to expectations of a Fed rate cut. As one of the largest meme coins on the market, DOGE could suffer from this shift in sentiment.

Data from Coinanlyze revealed that almost all the liquidation activity for DOGE in the past 24 hours originated from longs, indicating bets on higher prices. Surprisingly, only approximately $600,000 worth of shorts, or bets against the token, were liquidated. These figures mark the highest liquidations for DOGE futures since May 2021.

A substantial portion of the liquidations, totaling over $44 million, occurred on the popular Asia-based crypto exchange Huobi. Additionally, open interest, which represents the number of unsettled futures bets, dropped by 16% to $600 million.

Amidst the market turmoil, a long-short ratio tracking DOGE futures currently sits at 0.94, indicating a bearish bias among traders who are positioning themselves for further declines.

Liquidation refers to a situation in which an exchange forcibly closes a trader's leveraged position due to a loss of the trader's initial margin, either partially or entirely. Traders often face liquidation when they are unable to meet the margin requirements for a leveraged position, lacking sufficient funds to keep the trade open.

As the crypto market experiences a downward trend and traders brace for potential losses, the future of dogecoin and its performance in the coming days remain uncertain.