Dogecoin (DOGE) Rockets 925% in 24 Hours in Abnormal Liquidation Imbalance

Dogecoin Short Sellers Suffer Heavy Losses as Price Surges

Data from CoinGlass reveals that the past 24 hours have been tumultuous for traders betting against Dogecoin (DOGE). Short positions leveraging derivatives on the popular meme coin suffered significant liquidations, totaling $842,560.

In contrast, liquidations of long positions on DOGE amounted to a mere $91,640 during the same period, resulting in a staggering 925% imbalance between bull and bear liquidations.

Reasons for the Sharp Reversal

The price chart of Dogecoin provides insights into this dramatic shift. From September 2nd to 3rd, the value of the cryptocurrency jumped by over 6%, reclaiming the $0.10 mark at its peak.

This surge occurred primarily within a three-hour window, with DOGE gaining 3% in two consecutive hours on September 2nd and an additional 1.45% on September 3rd. Consequently, bears, particularly those entering late and anticipating a drop to $0.0942, faced liquidations, further fueling the price increase.

However, it's noteworthy that the price of Dogecoin has since reversed course and declined by 2.91% in the past hour and a half, trading at $0.098 per coin at the time of writing.

Conclusion

The recent price action in Dogecoin highlights the return of market volatility, bringing an end to a period of relative stability. While the future direction of the market remains uncertain, the recent events demonstrate the potential for significant price swings in the cryptocurrency space.