Recent data from Coinglass reveals a surge in liquidations of long positions in Dogecoin's (DOGE) futures market, marking the highest level in the past month within the last 24 hours. This spike was triggered by a broader market downturn following Bitcoin's price decline. Across the entire cryptocurrency market, over $860 million futures positions were liquidated, affecting 270,993 investors.

Impact on DOGE Investors

On-chain data indicates that total long position liquidations in DOGE amounted to $16 million. This is the most significant volume of long liquidations recorded in the crypto futures market since March 6th. In the event of liquidation, an investor's futures position is closed forcibly due to insufficient funds to sustain it. Long liquidations occur when an asset's price unexpectedly drops, leading investors with open positions who bet on price increases to exit those positions.

Comparatively, Coinglass reported total DOGE short sales on the specified day at $3.08 million. CoinMarketCap data shows that DOGE experienced a 13% price decline in the past 24 hours, contributing to a weekly loss of 6%.

Future Prospects for DOGE

Analysis of Dogecoin's daily price movements indicates the potential for gains over the coming weekend. However, fundamental momentum indicators suggest a decline in DOGE demand. Notably, the Relative Strength Index (RSI) and Money Flow Index (MFI) values were reported at 46.85 and 46.53, respectively, signaling reduced demand for the altcoin and an uptick in crypto sales.

Further assessments using the Directional Movement Index (DMI) highlighted a shift in trends with the positive direction index (green) dipping below the negative index (red) on April 12th. This shift from bullish to bearish momentum suggests a potential resurgence of bearish sentiment and an increase in profit-taking actions.

Moreover, the MACD line positioning above the signal line at the time of assessment indicated DOGE's short-term moving average surpassed its long-term moving average. As investors face these developments, they may encounter challenges ahead regarding their Dogecoin holdings.