Dogecoin is one of the leading cryptocurrencies trending in recent hours. This is largely due to the attention it has garnered thanks to the latest price increase of dogecoin.
The trend status of Dogecoin emphasizes strong demand for the cryptocurrency in both the spot and derivatives segments. Latest market data shows that interest in DOGE has recently surged to an all-time high.
Dogecoin open interest has increased since October. However, dogecoin's price performance so far in November has seen it rise above $3 billion in November. It peaked at $4.53 billion in the past 24 hours at the time of observation, marking a new all-time high.
The spike in open interest also indicates that the cryptocurrency is facing the risk of volatility due to liquidations.
Short selling liquidations spike as the price rises higher
Coinglass liquidation data shows that short selling liquidations have increased over the past 3 days. Long position liquidations show the opposite result as they have decreased during the same period.
Short selling liquidations peaked at $27.82 million in the last 24 hours. This figure is more than double the liquidation value of long positions, which reached $13.65 million during the same period.
Furthermore, November has become the month with the highest Dogecoin liquidations in the last 6 months. The recent spike in short selling liquidations is not coincidental. Considering the price movements of dogecoin will reveal the reasons.
Summary of Dogecoin Price Action
Dogecoin has risen over 14% in the past 24 hours, ending the week with Saturday being the most bullish day of the week. It surged to $0.48, marking the highest price so far in 2024.
The latest price increase means that the price of dogecoin has risen over 231% as of November. But can it continue on its current trajectory without a significant pullback?
The price surge occurred just a few days after the memecoin showed some consolidation from the previous price surge that peaked on November 12. This led to an increase in the number of short orders as many derivatives traders anticipate a pullback.
Additionally, the price seems to have formed a bearish divergence with RSI. MFI also indicates that liquidity is flowing out of the dogecoin price, thus creating a huge trap for short sellers.
The recent price push explains the recent increase in short selling liquidations. Therefore, the impressive 24-hour increase of Dogecoin may be the result of a short squeeze event.
There is a possibility that DOGE sellers will take over after the leveraged liquidation is completed. On the other hand, the market is in an extremely optimistic mood, which may cause many to be reluctant to take profits.
DOGE has the next big price target of $0.50. It may soon reach that price target based on its latest increase. Current expectations are that the price of Dogecoin could soar up to $1 before the end of the year or by 2025. However, this does not necessarily mean it won't pull back.
There may be a significant pullback, especially in December. This is primarily because investors may look to take some profits from holiday spending.
