Data insights from CoinGlass reveal that Dogecoin (DOGE) traders have witnessed severe liquidation in the last 24 hours.
The data shows that DOGE short traders registered more losses as the price moved against them. In complement, traders who bet long on DOGE recorded lesser liquidation figures.
DOGE’s Short vs. Long Position Liquidations
DOGE’s total liquidation came in at $11.85 million, with short positions accounting for over 60% of the figures.
While short traders had a total liquidation of $7.61 million, long traders recorded $4.24 million liquidation.
This marks a huge liquidation imbalance for short-position traders. Analysts speculate this development might have been influenced by the price movement of DOGE in the past seven days.
Notably, DOGE’s price experienced heavy fluctuations within the review period, with any gain recorded fading off shortly afterward.
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DOGE’s intense volatility might have thrown short traders off balance. However, the massive liquidation of short positions did not affect only DOGE.
The two notable assets with exchange-traded funds (ETFs), namely Bitcoin (BTC) and Ethereum (ETH), also saw heavy liquidations. Both assets registered higher liquidation for short-position traders.
Bitcoin’s total liquidation of $61.26 million comprised $14.13 million for long traders. Short position traders’ liquidation stood at $47.13 million. This correlates with DOGE, which followed a similar trajectory among its investors.
Dogecoin Price Rebound and Market Sentiment
In the past 48 hours, Dogecoin has seen a shift in price movements as it begins a steady rebound move.
As of this writing, DOGE’s price has jumped by 5% to $0.3722. Dogecoin’s price rebound has triggered investors’ interest, as showcased by the surge in trading volume.
In the last 24 hours, there has been an uptick of 17.18% in volume, now pegged at $3.83 billion.
The current price places Dogecoin approximately 50% away from its all-time high (ATH) of $0.7376, attained in May 2021.
Meanwhile, the memecoin’s price has fluctuated between a low of $0.3487 and a high of $0.3772 over the past 24 hours.
Despite DOGE’s inability to overcome the critical resistance level of $0.40 it crashed from about 30 days ago, holders remain optimistic.
This optimism was particularly visible with traders on the Binance exchange. Notably, data over the past week showed over 81% of all Dogecoin positions on the platform were long.
This signals their high optimism about DOGE’s future performance.
Future Outlook and Community Expectations
Where DOGE goes from here remains subjected to predictions and speculations.
Notably, the Dogecoin Foundation has a series of protocol updates under development.
At the close of 2024, when Billy Markus, Dogecoin’s creator, was asked about his price projections for DOGE, he could not provide a solid hint on the memecoin’s trajectory.
The occasional bullish sentiments prompted by Elon Musk, Tesla’s CEO, are its main triggers.
With the U.S. president-elect assuming office on Jan 20, investors might anticipate a price rally supported by macroeconomic sentiments.
Many anticipate that Musk could pull a surprise with DOGE, given the role he is expected to play in the administration.
Market watchers say investors have no option but to hope DOGE will rally as Bitcoin’s leading digital asset records a surge.
These expectations rely on changing market dynamics in the crypto space, drawing on its correlation with Bitcoin
