Dogecoin, a cryptocurrency that has been gaining traction, has recently experienced a significant price drop, falling below the $0.12 mark. This decline is attributed to a substantial increase in long liquidations, which have reached over $60 million in the past 24 hours. This surge in liquidations is unusual for Dogecoin's trading activity in the futures market and is comparable to Bitcoin's liquidations during the same period, despite Bitcoin's larger trading volume and market capitalization. In fact, this is the largest hit in terms of daily liquidations that Dogecoin has taken since May 2021.

The wider cryptocurrency market has also been affected, with over $444 million in liquidations occurring in the same period. The majority of these liquidations, around $382 million, were long positions, according to Coinglass data. This suggests that traders are positioning for more downside, which is further supported by the dogecoin futures long-short ratio. The ratio has risen above 0.9, indicating a bearish bias.

Open interest, or the number of unsettled futures bets, has also dropped by over 18% to $642 million, according to Coinglass data. This decline in open interest, combined with the increase in long liquidations, suggests that traders are becoming increasingly risk-averse and are reducing their exposure to the cryptocurrency market.

Large-cap memecoins, including Dogecoin, have also moved lower in general. The Block's GMCI Meme index, which comprises the leading memecoins by market capitalization, has fallen by over 10% in the past day to 249.41. This decline is likely due to the increase in long liquidations and the bearish bias in the market.

In conclusion, Dogecoin's price has experienced a significant drop amidst a surge in long liquidations. This decline is part of a wider trend in the cryptocurrency market, with many large-cap memecoins also moving lower. The increase in long liquidations and the bearish bias in the market suggest that traders are becoming increasingly risk-averse and are reducing their exposure to the cryptocurrency market. As such, it is likely that the price of Dogecoin will continue to fluctuate in the coming days.