Dogecoin Shows Signs of Recovery Despite Sideways Growth

Amidst its struggle to gain value, Dogecoin (DOGE) has found support at $0.250. While its growth has been sluggish, on-chain metrics indicate that severe liquidations may be subsiding.

Liquidation Imbalance Narrows

CoinGlass data reveals that total liquidations within the past 24 hours reached $2.72 million. Long position traders experienced $1.69 million in losses, while short positions accounted for $1.03 million.

This liquidation amounts to 10,571,652 DOGE, with long liquidations exceeding shorts by a mere $660,000. This suggests a less significant liquidation imbalance compared to previous instances.

Sustained Trading Volume

Long-position traders have been instrumental in the modest growth of DOGE in the past 24 hours. CoinMarketCap data shows a slight increase of 0.94% to $0.2572. Notably, trading volume has surged by 13.41% to $1.17 billion within the same time frame.

This renewed interest indicates a greater willingness among investors to embrace the meme coin.

ETF Approval Hopes

Speculation regarding the potential approval of a Dogecoin ETF may have boosted investor sentiment. The U.S. Securities and Exchange Commission (SEC) recently acknowledged Grayscale's application for a DOGE ETF. While approval is not guaranteed, it has ignited optimism within the community.

Sustained Volume Key for Further Growth

Analysts believe that for DOGE to retest its $0.30 level, it must maintain elevated trading volume over an extended period. This would reduce price volatility and avoid a potential death cross that was previously identified on-chain.