Dogecoin (DOGE) Update

Dogecoin (DOGE) has found support at the $0.250 level amid struggles for higher valuation. Its growth trajectory has been sideways rather than upward. Despite limited growth, on-chain metrics indicate that severe liquidations may have subsided.

Dogecoin Liquidation Imbalance Narrows

According to CoinGlass data, total liquidations in the last 24 hours reached $2.72 million. Long position traders accounted for $1.69 million of this, while short traders contributed the remaining $1.03 million. This resulted in a total of 10,571,652 DOGE liquidated over 24 hours. The liquidation imbalance shows long liquidations exceeded short liquidations by only $660,000, a less significant imbalance than before.

Long-position traders contributed to a slight price increase in DOGE over the last day. Per CoinMarketCap, DOGE has risen 0.94%, trading at $0.2572. Trading volume saw a more notable increase of 13.41%, reaching $1.17 billion, indicating renewed interest from market participants in the meme coin.

Will Increasing Trading Volume Make a Difference?

Speculation about a potential Dogecoin ETF has possibly boosted investor confidence. A week ago, the U.S. Securities and Exchange Commission (SEC) acknowledged Grayscale’s 19b-4 application for a DOGE ETF. While this does not guarantee approval, it has sparked optimism in the community, leading to a price uptick.

Analysts believe that to retest the $0.30 level, DOGE will need to maintain trading volume consistently over time. This approach may reduce price volatility and avoid a death cross that appeared on-chain earlier.