What's next for DOGE?
Dogecoin (DOGE) traders have seen heavy liquidation over the past 24 hours.
The data shows that short DOGE traders recorded larger losses as the price moved against them. In contrast, traders who bet long DOGE recorded lower liquidation numbers.
DOGE Short vs Long Liquidations
DOGE liquidations totaled $11.85 million, with shorts accounting for over 60% of the figures.
While the total liquidation value of short traders amounted to $7.61 million, short traders recorded liquidation value of $4.24 million.
This represents a significant liquidation imbalance for short traders. Analysts speculate that this development may have been influenced by DOGE’s price action over the past seven days.
It is worth noting that the DOGE price saw extreme volatility during the review period, with any gains recorded fading soon after.
The extreme volatility DOGE has seen may have thrown short traders off balance. However, the massive liquidation of short positions has not only affected DOGE.
The two prominent ETF assets, Bitcoin (BTC) and Ethereum (ETH), also saw significant liquidation. Both assets saw higher liquidity for short traders.
Total liquidation of Bitcoin was $61.26 million from long traders with $14.13 million. Short traders liquidated $47.13 million. This is consistent with DOGE, which followed a similar path among its investors.
Dogecoin Price Rebound and Market Sentiment
In the past 48 hours, Dogecoin has seen a turnaround in price action over the past 48 hours, as it has started a steady retracement movement.
As of this writing, DOGE price has jumped 5% to $0.3722. Dogecoin’s price recovery has caught the attention of investors, as evidenced by the significant increase in trading volume.
Over the past 24 hours, there has been a 17.18% increase in trading volume over the past 24 hours, with the trading volume now standing at $3.83 billion.
The current price puts Dogecoin roughly 50% away from its all-time high (ATH) of $0.7376, which was achieved in May 2021.
Meanwhile, the price of memecoin has fluctuated between $0.3487 and $0.3772 over the past 24 hours.
Despite DOGE failing to break above the critical resistance level at $0.40 from which it collapsed about 30 days ago, stock holders remain bullish.
This optimism was particularly evident among traders on the Binance exchange. Notably, data over the past week showed that more than 81% of all Dogecoin trades on the platform were long.
This indicates their great optimism about DOGE's future performance.
Future expectations and community expectations
Where DOGE will go from here remains subject to predictions and speculation.
It is worth noting that the Dogecoin Foundation has a series of protocol updates under development.
At the end of 2024, when Billy Markus, the creator of Dogecoin, was asked about his DOGE price predictions, he couldn’t give a solid hint about the trajectory of memecoin.
The occasional bullish sentiment driven by Tesla CEO Elon Musk is its main catalyst.
With the US president-elect taking office on January 20, investors may expect prices to rise, supported by macroeconomic sentiment.
Many expect Musk to make a surprise with DOGE, given the role he is expected to play in the management.
Market watchers say investors have no choice but to hope that DOGE will rally as leading digital asset Bitcoin posts a major rally.
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