- Elon Muskโs meme with a buff Shiba Inu dog piques community excitement.
- Dogecoin jumps to a three-month high as dog-themed cryptos grow 12%.
- Record-high leverage use reflects on Dogecoinโs $11M short liquidations.
Dogecoin (DOGE) surprised its investors, leading the market rally with double-digit pull-ups for three consecutive days. While Dogecoinโs price has yet to break through its yearly record of $0.22, the current run to $0.18 has been nothing short of impressive.
SHIB & DOGE Fetch 10% After Muskโs Statement
Social mentions on X triggered the surge, as Teslaโs CEO Elon Musk launched a “Department of Government Efficiency” (D.O.G.E) campaign. The proposed department promises to โget the government off your backโ as Musk pledges to reduce U.S. spending by $2 trillion.
The news from The Doge Father has sat well with the Dogecoin community, popularly known as the DOGE Army. โItโs DOGE season,โ declared several crypto aficionados as Dogecoin spurred to a new three-month high of $0.18 a few hours back. The bullish price action is accompanied by rising trading volume, currently at $4,296,011,386 in 24 hours.
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Meanwhile, Shiba Inu (SHIB) sparked a 12% daily rally multiple hours after DOGE’s price rally. According to CoinGecko, SHIB briefly tackled $0.000019 before consolidating at $0.0000188. With 54% of SHIB holders currently in profit, Shiba Inuโs way up is met with larger resistance than Dogecoin, which counts over 85% of DOGE custodians in profit.
Dogecoin Liquidation Imbalance Strikes Traders
A tsunami of short position liquidations on the Derivatives market follows the bullish outbreak in Dogecoinโs price. With a 184% upswing in volume since yesterday, Dogecoinโs stablecoin-margined futures plays breached $7 billion, while the Open Interest (OI), or unsettled plays on DOGE, inked 36.6% during the same time frame to claim $1.33B.
However, this upswing in speculative market popularity comes with nearly $14 million in overall position liquidations in 24 hours, of which a hefty $11.2 million are short positions. Dogecoinโs short sellers got beaten by crypto bulls, mainly due to expectations of an imminent market correction after DOGE touched $0.145 last Sunday.
All four key on-chain signals by blockchain analytics platform IntoTheBlock flashed bullish for Dogecoin. At present, the slight daily increase in network growth and holders at a profit is paired with a 3.33% daily uptick in large investor transactions, solidifying the bullish status.
As Dogecoin is the second largest Proof of Work (PoW) blockchain, transaction fees garnered on the network contribute to the chainโs sustainability. This makes Dogecoin stand out from the regular meme coin crowd as a relatively more stable digital asset.
On the Flipside
- Dogecoin surpassed the $0.175 barrier, marked by crypto analysts as key resistance for a continuous bullish momentum.
- Shiba Inu whales havenโt reacted in the same way to Dogecoin, as large SHIB transactions slowed by over 5% in 24 hours.
Why This Matters
The crypto communityโs excitement after Elon Muskโs Department of Government Efficiency (D.O.G.E) endorsement of Donald Trumpโs campaign ignited a price surge. However, traders are susceptible to mass liquidations due to rising stablecoin-margined leverage.
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