Dogecoin was one of the top trending cryptocurrencies in the last hours. This was largely because of the attention that it garnered courtesy of the latest upside of dogecoin price.
The Dogecoin trending status underscores the robust demand for the cryptocurrency in both the spot and derivatives segments. The latest market data revealed that interest in DOGE recently soared to its highest price level in history.
Dogecoin open interest has been on the rise since October. However, dogecoin price performance so far in November saw it rally above $3 billion in November. It peaked at $4.53 billion in the last 24 hours at the time of observation, marking a new all-time high.
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The surge in open interest also suggests that the cryptocurrency was exposed to potential volatility due to liquidations.
Shorts Liquidation Surge as Price Ticked Higher
Coinglass liquidation data revealed that short liquidations were on the rise in the last 3 days. Long liquidations demonstrated an inverse outcome since they declined during the same period.
Short liquidations peaked at $27.82 million in the last 24 hours. This was more than double the value of long liquidations which came in at $13.65 million during the same period.
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Also, November has turned out to be the month with the highest Dogecoin liquidations in the last 6 months. The recent surge in shorts liquidations was no fluke. A look at dogecoin price action reveals why.
Dogecoin Price Action Recap
Dogecoin rallied by over 14% in the last 24 hours concluding the week with Saturday as its most bullish day of the week. It soared as high as $0.48, which marks its highest price so far in 2024.
The latest upside means dogecoin price has so far rallied by over 231% so far in November. But could it continue on its current trajectory without a substantial pullback?
The rally came just days after the memecoin demonstrated some consolidation from the previous rally which peaked on 12 November. This led to a surge in the number of shorts as many derivatives traders anticipated a retracement.
In addition, price appeared to have been forming a bearish divergence with the RSI. The MFI also indicated that liquidity was flowing out of dogecoin price, thus creating a massive trap for short sellers.
The recent push thus explains the recent surge in short liquidations. Dogecoin’s impressive 24-hour gains may have therefore been the result of a short squeeze event.
It is possible that DOGE bears may take over once the leveraged liquidations shakedown is complete. On the other hand, the market has been in an extremely bullish mood which may discourage many from taking profits.
DOGE has its next major price target at $0.50. It could soon reach that price target judging by its latest upside. The current expectation is that Dogecoin price could soar as high as $1 before the end of the year or in 2025. However, this does not necessarily mean that it is exempt from pullbacks.
Massive pullbacks could be on the cards especially in December. This is particularly because investors will likely take some profits for spending during the holidays.
