Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
According to CoinGlass data, Dogecoin saw $0 in short liquidations in a twelve-hour period, with the market now paying attention. Short liquidations occur when traders betting on a price decline are forced to close their positions after the market moves against them. Short liquidations often occur as prices increase, leading to bearish traders being squeezed out of their positions.
The $0 liquidation recorded in the last 12 hours might suggest that short sellers were not caught in aggressive positioning or that the price increase was not large enough to trigger forced closures.
However, longs were liquidated in this timeframe, with $120,960 in bullish positions liquidated according to CoinGlass data. The reason for the complete absence of bearish liquidations remains uncertain, but it might suggest that short sellers had become more cautious after the drop earlier this week.
A deepening global selloff in chipmakers dragged cryptocurrencies lower after an earlier rally on this week's soft inflation print. Softer-than-expected July inflation data had eased fears of near-term Fed rate hikes, boosting risk assets. However, the rise was short-lived as traders took profits, with cryptocurrencies including Dogecoin erasing their gains.
Bears losing control?
Dogecoin declined after a sharp rise to $0.0753 on July 14 as bulls were not able to sustain the move. The dog coin fell for two consecutive days before rebounding from a low of $0.07 on Friday.
The sudden rebound on Friday might have caused short sellers to pause, as evidenced by the absence of short liquidations in a 12-hour timeframe. Traders may be waiting for clearer signals before opening larger positions.
At the time of writing, DOGE was up 0.96% in the last 24 hours to $0.072. With Dogecoin's price little changed over the past day, long liquidations are nearly on par with short liquidations. $1.14 million in DOGE was liquidated in long positions and $909,420 in short positions.
Dan Burgin
U.Today Editorial Team
