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Dogecoin dethrones Bitcoin in shorts liquidation as DOGE price moves closer to $0.10

  • Dogecoin shorts worth $4.67 million were liquidated in the past 24 hours against Bitcoin’s $4.47 million. 
  • The meme coin takes center stage as the momentum from Twitter’s rebranding to X continues to catalyze the DOGE recovery. 
  • DOGE price climbed 17% since Musk’s announcement with the meme coin trading at $0.078. 

Dogecoin, the largest meme coin in the crypto ecosystem, witnessed large volumes of short position liquidation over the past 24 hours. DOGE emerged as the single asset with the largest shorts liquidated in the timeframe, beating Bitcoin, according to data from Coinglass.

With Bitcoin price lacking directional bias below $30,000, Dogecoin has taken center stage among market participants, and the bearish bias among traders is fast declining.

Also read: Dogecoin price surges on rumors about becoming payment tool at X

Dogecoin beats Bitcoin in volume of shorts liquidated overnight

Typically, short liquidation is considered bullish for an asset. Based on data from Coinglass, DOGE recorded $4.67 million in short position liquidations in the past 24 hours against Bitcoin’s $4.47 million. 

Liquidation heatmap for DOGE, BTC and other altcoins

Liquidation heatmap for DOGE, BTC and other altcoins

The bearish bias against the meme coin is rapidly declining based on the above metric, and DOGE is eyeing a recovery to the $0.10 level, seen most recently in April 2023. 

Top three catalysts driving DOGE price recovery

Bitcoin’s lack of directional bias, the alt season rally and Twitter’s rebrand to X are the top three catalysts likely driving DOGE price higher over the past week. BTC is range bound below the psychological barrier at $30,000, as market participants wait and watch for the impact of macro moves this week.

Based on the alt season index by Blockchaincenter.net, July is an altcoin month. Altcoins in the top 50 assets by market capitalization have consistently outperformed Bitcoin in a 30-day timeframe, driving gains in tokens like DOGE. 

Alt season is typically the capital rotation from Bitcoin to altcoins. Investors rotate profits from the largest asset by market cap to alternative cryptocurrencies for scope of higher gains in the short term.

Moreover, Dogecoin’s most influential proponent, Elon Musk, has announced a Twitter rebrand to X, which has rekindled speculation thatDOGE will be accepted as a payment method in the near future. This is one of the key catalysts driving the meme coin higher. 

Find out more about this here.

At the time of writing, DOGE is trading at $0.078, in its upward trend that started in June 2023.


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Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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