Dogecoin (DOGE) Finds Support at $0.25, Liquidation Imbalance Narrows

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.

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 liquidations

CoinGlass data show that total liquidation in the last 24 hours stood at $2.72 million. This liquidation was predominantly experienced by traders who took long positions.

Specifically, the data shows that traders who took long positions on DOGE experienced liquidations to the tune of $1.69 million, while those who took short positions saw $1.03 million in liquidations.

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.

The slight climb in the price of DOGE in the last 24 hours can be largely attributed to traders who took long positions on the meme coin.

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.

Dogecoin ETF approval hopes rise

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.

The ETF application was filed by Grayscale on 18 July 2023. The application, if successful, will see the creation of the Grayscale Dogecoin Trust (GDOT).

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

According to CoinGeko data, DOGE now ranks 10th by market capitalization. The meme coin has lost 88.3% from its all-time high of $0.73.

On the other hand, DOGE has risen by over 30% since the beginning of 2023. The coin, which dropped to a low of $0.08 in December 2022 amid the FTX collapse, has managed to sustain trading above the $0.25 level for the last two months.

The sustained trading volume might be necessary for Dogecoin to retest its $0.30 level. The coin will need to sustain trading volume over an extended period for this to happen. The price volatility will thin out this way and shun the death cross that emerged on-chain earlier.