Dogecoin Bags 343,069% in Liquidation Imbalance, Will Price Follow?

In the last 24 hours, Dogecoin (DOOGE), the king of meme coins, posted a slight rebound on the crypto market. The price of DOGE climbed by 3.04%, triggering a massive liquidation imbalance for long position traders, as revealed by Dogecoin’s liquidation heat map.

Dogecoin's trading volume declines amid liquidation

According to CoinGlass data, Dogecoin long traders, in the last one hour, recorded a 343,069% liquidation imbalance against short trades. Notably, the long position lost $148,880 within 60 minutes as the price shifted.

CoinMarketCap data reveals that the Dogecoin price climbed from a low of $0.2088 to hit a peak of $0.224. As of press time, Dogecoin is changing hands at $0.2161, representing a 0.65% increase despite fluctuations in performance.

The meme coin’s trading volume has, however, declined by a significant 21.52% to $2.61 billion. This suggests that the gains from the price rebound might not stabilize unless ecosystem investors step up their activities.

Dogecoin had raised the hopes of many market participants of sustained upward movement after it formed a bullish golden cross on its daily chart less than 10 days ago. Many were anticipating a sustained rally toward the $0.30 level, but broader crypto market uncertainties prevented it from happening.

Meanwhile, short position traders also recorded a negligible loss of $43.39 within the same time frame.

Analysts predict Dogecoin consolidation before breakout

Despite these developments, Ali Martinez, a renowned on-chain analyst, believes that Dogecoin is in a consolidation triangle. The analyst insists that if the market conditions are right, DOGE could surge by as much as 40% in the price outlook.

The meme coin has, however, continued to battle volatility, and Bitcoin’s stagnation in price has also not helped with the movement. Given DOGE’s correlation to Bitcoin (BTC), the meme coin is likely to sustain its gains if BTC appreciates.

Some have blamed the current volatility on the concerns of DOGE holders about a possible Qubic network takeover.