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Dogecoin (DOGE) has recorded a massive sell-off as the liquidation imbalance hit 4,578% in the last four hours. The liquidation was triggered by DOGE’s sharp uptick in price as the meme coin gained suddenly on the market. The development resulted in losses for bears.
Dogecoin price surge triggers heavy short liquidations
CoinGlass data show that in the last four hours, short position traders lost $261,980 as the price surged by over 3%. The uptick shocked those betting on Dogecoin to remain in its bearish state as the meme coin posted a recovery in the last 24 hours.
DOGE climbed as Bitcoin, the leading digital asset, rebounded in the crypto market to reclaim the $89,000 level. This positively impacted altcoins, including Dogecoin, which received new capital injection as investors anticipate further upswing.
In the past 24 hours, Dogecoin has climbed from a low of $0.1214 to an intraday peak of $0.1273. As of press time, Dogecoin exchanges hands at $0.1263, which represents a 3.78% increase within this time frame.
The king of the meme coins has also recorded a significant surge in trading volume, which rose by 29.61% to $1.24 billion. The volume spike indicates increased engagement from investors, who are leveraging the rebound sparked by Bitcoin’s gains.
If Dogecoin is able to hold above the $0.1243 support, it could continue its upsurge. The current price level and volume signals that the market is absorbing selling pressure, so a reversal is unlikely.
However, the Relative Strength Index at 43.7 does not clearly define if it is oversold or overbought. At the moment, retail traders are still driving momentum in the market, and sustained growth might require institutional interest.
It is worth mentioning that the price shift also caused mild losses for long position traders, with $5,600 cleared within the four-hour period.
Key rebound signals
With the recent bullish moves by Dogecoin, the meme coin’s earlier Bollinger Bands signal might finally come through. As U.Today reported, DOGE is likely to witness a 30% upsurge if market conditions are favorable. This might support the asset's climb toward the $0.16 zone.
To achieve this, investors and market participants need to actively engage the meme coin and ensure that volume stays up. Additionally, the $0.1243 support needs to hold amid broader crypto market volatility.
Earlier, Dogecoin investors had shown potential with increased open interest, which hit $1.41 billion over the weekend. If such is sustained, Dogecoin might be on the path of recovery.
Arman Shirinyan
Godfrey Benjamin
Denys Serhiichuk
Tomiwabold Olajide