Cryptocurrency News

Dogecoin returns to pre-crash prices as $16M liquidated in DOGE shorts


Dogecoin (Doge) prices rose nearly 40% on the 24-hour adjusted time frame on June 2, shaking off bearish leverage worth over $16 million in just one hour, while nearly reclaiming its pre-crash high have done.

The Dogecoin derivatives market recorded massive liquidations on the hourly time frame. Source: ByBt.com

Leveraged bearish traders found themselves on the wrong side of trading after US-based crypto trading platform Coinbase Pro announced that it would enable DOGE trading on its portal starting June 3.

“Immediately, we will begin accepting inbound transfers of DOGE to Coinbase Pro,” said Coinbase Confirmed in my blog post.

Once a sufficient supply of DOGE is established on the platform, trading on our DOGE-USD, DOGE-BTC, DOGE-EUR, DOGE-GBP, and DOGE-USDT order books will begin in three phases, post-only, Limit-only and complete trading.

The news prompted a sudden overnight spike in the DOGE spot market, with speculators betting on the cryptocurrency’s price drop.

The DOGE/USD exchange rate rose to $0.064 or 17.34% after opening in the green on Wednesday. The pair touched an intraday high of $0.454 before seeing a slight decline led by profit takers. As of 1207 UTC, DOGE was changing hands for $0.434.

Dogecoin also performed well against its top rival asset, Bitcoin.B T c) The DOGE/BTC exchange rate jumped 33% over the past 24 hours, erasing all losses against bitcoin during the May 19 crash.

Dogecoin has posted massive intraday gains against the US Dollar and Bitcoin. Source: TradingView

The last 24 hours saw a short liquidation of $47.83 million worth of Dogecoin.

Bullish Call Resurface

Dogecoin’s latest move also prompted observers to predict a $1 valuation for Dogecoin in the coming sessions, a level the DOGE/USD missed after hitting $0.76 on Binance.

For example, Primordial Hashrate, a crypto-focused newsletter service, cited Dogecoin’s Relative Strength Index (RSI)—a technical indicator that charts an asset’s current and historical strength or weakness—as its signal. To bid DOGE/USD towards 1.

Ronnie Moas, founder of Standpoint Research – a Miami-based financial research startup famous The addition of Dogecoin to Coinbase Pro, the most popular platform among professional crypto traders, will open Doge to “millions more investors around the world”.

heavy bubble

Dogecoin mainly developed at the discretion of traders after receiving support from Elon Musk. The Tesla founder/CEO posted tweets in support of Dogecoin, going so far as to jokingly call himself “The Dogfather”, While recently stating That he is the “master of Dogecoin”.

Musk’s popularity played a key role in pushing DOGE/USD bids over 15,300% In 2021, its market capitalization reached $92 billion, surpassing even AirBnb and Infosys.

But the supersonic price rally also invited fear, uncertainty and doubt (FUD) of a potential bubble. After Musk, panic almost broke out in the market Dogecoin Is Called “Bustle” During its televised performance on Saturday Night Live on May 8, prices dropped by 45% over the next three daily sessions.

The selling intensified on May 19 amid brutal selling in the market. Dogecoin fell to $0.29, down more than 74% from its all-time high of $0.76. pseudonymous analyst, Asian investor, famous That Dogecoin is in the third stage of a “giant bubble” – the hype phase – that will soon follow the deflation and panic-selling phases. she added:

All the spirits are over. When this hype is over, people will look back at Dogecoin and wonder how money could never have been made out of nothing.

Dogecoin has made a rally of around 132% after the low of $0.29.