Dogecoin (DOGE) Price Climbs, Short Sellers Caught Off Guard as Liquidations Spike

Dogecoin has seen a spike in price, as the memecoin king experienced an increase of more than 3% in the last 24 hours.

Dogecoin (CRYPTO: DOGE) saw a spike in price on Wednesday, as the memecoin king experienced an increase of more than 3% in the last 24 hours. While the gain may not seem dramatic on the surface, it has had a noticeable effect on traders—particularly those who had been betting against the coin.

What Happened: As the DOGE price edged higher, many short traders were forced to close their positions, resulting in a wave of liquidations. The shift ended up causing a 200% liquidation imbalance in the market, mainly affecting those holding short positions on Dogecoin.

According to data from CoinGlass, short trades saw $5.24 million in liquidations across the 24-hour period, while long positions recorded a smaller $2.80 million. The gap showcases how the sudden price rebound left many short sellers exposed, unable to react quickly enough.

In just one hour, short traders lost $741,090, compared to only $18.62 on the long side. Over a four-hour window, short positions faced $19.54K in liquidations, while long positions were at $410.06K. Even looking at the one-hour chart, short trades lost $19.13K, and long trades just $2.59K. Across all timeframes, shorts consistently took heavier losses.

Considering the current technical indicators, Dogecoin shows early signs of upward momentum. The MACD line is at 0.01338, just below the signal line, which sits at 0.01360. The histogram is at -0.00021, suggesting that the lines are beginning to converge. If they cross, it would reflect a potential shift in momentum towards buyers.

The RSI is also offering useful insight. It currently stands at 59.79, which is well below the overbought level of 70. This means there’s still room for the price to move higher without being considered overextended. Additionally, the RSI has been forming higher lows, which can be a sign of building strength among buyers.

What's Next For Dogecoin

If Dogecoin can manage a clean break above $0.239, it could open the way for a move toward $0.265. This level is being closely watched by technical traders, as clearing it might encourage further buying and shift market sentiment more firmly in favor of bulls.

Dogecoin may have formed a bullish flag pattern, which usually appears after a short-term rally and signals a continuation if the price breaks above the upper boundary of the flag. If that happens, the next price target being mentioned is around $0.30.

Similarly, Javon Marks linked Dogecoin’s past bull market cycles to its current setup. He noted that, based on how the memecoin behaved in the past, it could increase by at least 215% to reach $0.73905.

While these views do not guarantee results, they reflect how the mood around Dogecoin is beginning to shift. The recent increase in active addresses, coupled with lighter liquidation on long trades and increasing pressure on shorts, adds some weight to the possibility of further upward movement.

See More: Top Cryptocurrency News

Get Ranging Orders, Technical Analysis, and More With Benzinga Pro. Start a Free Trial Today!