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

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As a seasoned analyst with years of experience in the volatile world of cryptocurrencies, I’ve seen my fair share of market swings that would make even the most hardened trader’s head spin. Today, I find myself once again witnessing an extraordinary event unfolding before my very eyes – the 925% liquidation imbalance between bulls and bears on Dogecoin (DOGE).

According to CoinGlass data, the past 24 hours have been challenging for Dogecoin (DOGE) bearish traders, as their short positions on this popular meme cryptocurrency experienced a substantial loss. This resulted in a total liquidation of $842,560.

In terms of the cryptocurrency market, it appears that this doesn’t represent a significant amount, but when considering long position data, it’s quite intense. To illustrate, during the specified period, liquidations of long positions on DOGE amounted to $91,640.

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

This puts the liquidation imbalance between bulls and bears at a staggering 925%. 

Reasons

Could someone wonder how this happened? The solution lies in the Dogecoin price graph. From September 2nd to 3rd, the price of the popular meme cryptocurrency increased by more than 6%, reaching and surpassing the $0.10 mark at its highest point during that timeframe.

The majority of the increase occurred within three hours, as DOGE experienced a 3% rise in two consecutive hours yesterday, followed by an additional 1.45% today. Consequently, short-sellers, including late entrants and those who had wagered on DOGE’s decline to $0.0942, were forced to sell, which fueled the coin’s price surge at its beginning.

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

Surprisingly, despite the soaring increase of 925%, the price of the meme coin has moved downward today. In the past hour and a half, its value has dropped by 2.91%. At present, each Dogecoin is being traded for approximately $0.098.

To summarize, it appears that the thrilling ride of fluctuating prices on the roller coaster market has returned once more. However, for the present moment, this renewed excitement signals an end to a rather uneventful market phase.

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2024-09-03 19:00