- Dogecoin’s massive surge triggers 4,578% liquidation, leaving bears scrambling.
- Bulls drive Dogecoin price up, causing millions in short losses.
- Bitcoin’s rebound fuels Dogecoin rally, eyes on $0.16 target.
Dogecoin (DOGE) experienced an explosive surge in price, causing a massive liquidation event that left short-sellers reeling. According to CoinGlass, the liquidation imbalance reached a staggering 4,578% in just four hours, wiping out nearly $262,000 from short positions. This sudden spike in DOGE’s value, which increased by over 3%, took many by surprise, as most traders were expecting the meme coin to remain in a bearish trend.
The rally came as Bitcoin (BTC) made a significant rebound, climbing back to the $89,000 mark. Bitcoin’s resurgence had a ripple effect across the altcoin market, and Dogecoin was no exception, benefiting from renewed investor interest. In the past 24 hours, Dogecoin’s price climbed from $0.1214 to an intraday high of $0.1273. As of the latest data, DOGE is trading at $0.1263, marking a 3.78% increase.
Additionally, Dogecoin saw a massive increase in trading volume, surging by 29.61% to hit $1.24 billion. This surge in activity indicates a growing interest from retail traders, who are driving the momentum as the broader cryptocurrency market recovers. While the price spike resulted in significant losses for short position traders, it also led to some mild losses for long position traders, totaling $5,600 during the same four-hour window.
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Key Support Level and Future Outlook for Dogecoin
For Dogecoin to maintain its bullish momentum, the key support level to watch is $0.1243. If DOGE manages to hold above this level, it could continue to climb in the coming days. The price surge, combined with the rise in volume, suggests that the market is absorbing selling pressure, making a reversal less likely. However, the Relative Strength Index (RSI) is currently at 43.7, leaving some uncertainty about whether Dogecoin is in an oversold or overbought condition.
Looking ahead, investors are optimistic about Dogecoin’s potential. If the meme coin continues to show strength and volume remains high, there could be a 30% increase, potentially pushing the price to $0.16.
The continuation of this rally will depend on both retail and institutional involvement in the market. As the crypto market remains volatile, all eyes are on Dogecoin to see if it can sustain its upward momentum or if the bears will make a comeback.
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