Dogecoin (DOGE) Liquidation Fades, but There’s Catch

Dogecoin (DOGE) has found support at the $0.250 level amid the struggles to climb higher in value. However, DOGE’s growth has been sideways instead of upward. Despite the limited growth being experienced by DOGE, on-chain metric signal severe liquidations could be over.

Dogecoin liquidation imbalance narrows

CoinGlass data show that total liquidation in the last 24 hours stood at $2.72 million. Long position traders saw $1.69 million wiped out, while the remaining $1.03 million was for short position traders.

This amounts to a total of 10,571,652 DOGE liquidated within 24 hours. With long liquidations exceeding short liquidations by just $660,000, the liquidation imbalance is less significant than previous ones.

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Long-position traders have largely stimulated the slight climb in the price of DOGE in the last 24 hours.

As per CoinMarketCap data, DOGE has climbed slightly by 0.94% to trade at $0.2572. However, growth in trading volume is more significant, with data showing an uptick of 13.41% to $1.17 billion within the same time frame.

This signals renewed interest on the part of market participants who appear more willing to commit to investing in the meme coin.

Will increasing trading volume make difference?

The news of a possible Dogecoin ETF approval might have fueled investors’ confidence.

Notably, exactly a week ago, the U.S Securities and Exchange Commission (SEC) acknowledged the 19b-4 application of Grayscale for a DOGE ETF. Although the move does not automatically translate to approval, the acknowledgment sparked hope of possibility among community members.

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Investors consider the development bullish, leading to a slight uptick in price.

Analysts opine that with DOGE liquidation gradually fading, for Dogecoin to retest its $0.30 level, the coin might need to sustain trading volume over an extended period. The price volatility will thin out this way and shun the death cross that emerged on-chain earlier.