During the previous week, the crypto market witnessed notable levels of liquidation as prices underwent fluctuations. Short traders, in particular, faced the consequences of these liquidations, especially with Bitcoin [BTC] showcasing some upward movement.
Concurrently, meme-based coins continued their descent in market capitalization, painting a wary picture for the upcoming crypto week.
Anticipating liquidations in the crypto week to come
The week gone by saw liquidations exceeding $690 million, based on Coinglass data. This underscored the heightened risk and unpredictability prevailing within the cryptocurrency domain.
Significantly, short positions accounted for over $418 million of these liquidations, indicating that numerous traders who were betting on price drops found themselves in a tight spot due to recent price hikes.
In comparison, the preceding week observed a greater volume of long liquidations, totaling roughly $276 million.
This transition hinted at a shift in market sentiment, with traders with optimistic projections compelled to exit positions due to price volatility.
With the onset of the current week, there has been a noticeable rise in long liquidations, hinting at potential challenges for those speculating on further price escalations.
This alteration contributes to the ambiguity encircling the market’s trajectory for the forthcoming crypto week.
Expecting further downturn for memecoins
Memecoins have been on a downward trajectory for several weeks, and the prospects for the approaching crypto week appear grim.
Data reflects that from the start of the month until now, the market capitalization of memecoins has plummeted by over $3 billion, settling around $35 billion as of the present moment.
Prominent memecoins like Dogecoin [DOGE], Shiba Inu [SHIB], and Pepe [PEPE] have all experienced declines in the recent 24 hours, indicating the continuation of the negative trend for memecoins.
Prudent hopefulness on the horizon
Despite the recent positive movement of Bitcoin and the liquidation data hinting at a potential sentiment shift, the surge in long liquidations implies that traders remain divided regarding the market’s trajectory.
Contrarily, memecoins have kickstarted the week on a pessimistic note, as diminishing market capitalizations further contribute to the bearish sentiment.
Overall, the impending crypto week is poised to be eventful, necessitating traders to vigilantly track essential levels and trends across various digital assets.