43,231,268 Dogecoin Liquidation Stuns DOGE Short Traders

Dogecoin Liquidations Surge, Driving Price Increase

The cryptocurrency market has witnessed significant liquidations, with over $200 million lost by more than 92,000 traders in the last 24 hours. Dogecoin (DOGE) has been the most affected meme coin, with liquidations totaling $12.02 million, according to CoinGlass data.

Short Positions Spur Liquidations

CoinGlass data reveals that the majority of liquidations stemmed from short positions, with 43,231,268 DOGE liquidated in just 24 hours. While short liquidations resulted in the removal of over 28 million DOGE, long liquidations affected approximately 14 million DOGE.

Imbalance in DOGE Trading

The disparity between short and long liquidations indicates an imbalance in DOGE futures trading over the past day. This imbalance has contributed to Dogecoin's recent price increase, as short sellers are being forced out of the market.

In the last 24 hours, DOGE's price has climbed by 2.9% to $0.2793, as reported by CoinMarketCap data. Trading volume has also witnessed a surge of 38.41% to $2.34 billion, reflecting increased investor activity.

Potential for Further Rally

DOGE's price may continue to rise if short sellers remain unable to regain their positions. Another key factor that could drive the price higher is the potential approval of a Dogecoin exchange-traded fund (ETF).

Fox Business journalist Eleanor Terret recently confirmed that the U.S. Securities and Exchange Commission (SEC) has acknowledged the filings for a DOGE ETF. The agency also acknowledged Grayscale's applications to convert its XRP Trust into an ETF.

While acknowledgment does not guarantee approval, it suggests the regulator's openness to considering such products. The eventual approval of a DOGE ETF could enhance the asset's legitimacy, leading to increased institutional adoption.

Bullish Momentum Ahead

Technical analysis indicates that DOGE has formed a "cup" pattern, which suggests further bullish momentum ahead.