Dogecoin (DOGE) Breakout Could Lead to a 21% Price Increase
Dogecoin’s price rose by 11% in the past day when the entire crypto market rallied, bringing the meme coin to trade at $0.163. This led to the traders who were pining for a price fall losing their money, as evident in the short liquidations worth nearly $7 million.
This is the largest single-day short liquidation in more than two months. Historically, such large liquidations have seen rises in the following days, and the same is anticipated presently. This liquidation may also result in the bears backing off as investors await a rally.
Investors’ optimism is fueled by the $1.28 billion worth of profits they will witness. According to the Global In/Out of the Money (GIOM) indicator, about 7.87 billion DOGE were bought between $0.16 and $0.18.
This supply could turn profitable soon since Dogecoin’s price is exhibiting bullish signs. However, this would warrant a breach of the $0.16 resistance level. Since DOGE holders are close to noting such huge profits, they will likely act accordingly until the altcoin hits $0.18.