Dogecoin (Doge) prices rose nearly 40% in a tight 24-hour time frame on Wednesday, shaking more than $ 16 million in leverage in just one hour as they almost regained their pre-college high. lapse.
The Dogecoin derivatives market records massive liquidations over periods of time. Source: ByBt.com
Leveraged bearish traders found themselves on the wrong side of the trade after Coinbase Pro, a U.S.-based encryption trading platform, announced it would allow Doge trading on its portal starting Thursday.
“Starting immediately, we will begin accepting incoming transfers from Doge to Coinbase Pro,” Coinbase confirmed in its blog post.
“Once a sufficient supply of Doge has been established on the platform, trading in our Doge-USD, Doge-BTC, Doge-EUR, Doge-GBP and Doge-USDT order books will be launched in three phases, only post, only limit and full trade «.
The news sparked a sudden overnight rise in the markets in Doge County, burning speculators who had bet on the fall in the price of digital currency.
A boring market gravitates towards $ Doge.
Dominance of spot volume (orange) compared to the rest of the highs (blue) in Binance spot. pic.twitter.com/PlkdOJkf0V
– Hsaka (@HsakaTrades) June 2, 2021
The Doge / USD exchange rate rose to $ 0.064, or 17.34%, after opening green on Wednesday. The pair reached an intraday high of $ 0.454 before witnessing a small downward correction led by earnings takers. At 00:07 UTC, Doge changed hands for $ 0.434.
Dogecoin also did well against its main rival asset, Bitcoin (BTC). The Doge / BTC exchange rate jumped 33% in the previous 24 hours, erasing all the losses it had incurred against Bitcoin during the May 19 collapse.
Dogecoin records massive intraday gains against the US dollar and Bitcoin. Source: TradingView
The last 24 hours have witnessed short settlements of Dogecoin worth $ 47.83 million.
Bullish calls resurface
Dogecoin’s latest upward move also led observers to predict a $ 1 valuation in the coming sessions, a level that Doge / USD lost after reaching a high of $ 0.76 on Binance.
For example, Primordial Hashrate, a cryptocurrency-focused newsletter service, cited Dogecoin’s Relative Strength Index (RSI), a technical indicator that shows an asset’s current and historical strength or weakness as its signal. to offer Doge / USD for $ 1.
$ Doge has gotten big purchases in the RSI buying area.
2. It is the next resistance buying area for $ Doge.
$ 1 incoming .. pic.twitter.com/xllZnOJl7t
– Hashrate primordial ❗ (@prhashrate) June 2, 2021
Ronnie Moas, founder of Standpoint Research, a Miami-based financial research startup, noted that the incorporation of Dogecoin into Coinbase Pro, a more popular platform among professional cryptocurrencies traders, would open Doge to “millions more investors in all the world “.
Dogecoin became the conscience of traders mainly after receiving the support of Elon Musk. The founder and CEO of Tesla posted tweets in support of Dogecoin to the extent that he ended up calling himself “the Dogefather” jokingly, while recently he also claimed to be “the master of Dogecoin”.
Musk’s popularity became a deciding factor in boosting Doge / USD bids by more than 15.300% in 2021, with a market capitalization reaching $ 92 billion, surpassing even Airbnb and Infosys.
I found this photo of me when I was a kid pic.twitter.com/hUEKluRAdP
– Elon Musk (@elonmusk) June 2, 2021
But the supersonic rise in prices has also caused fear, uncertainty and doubt, or FUD, of a possible bubble. Panic almost gripped the market after Musk called Dogecoin “in a hurry” during his television appearance on Saturday Night Live on May 8, causing a price drop of 45 % in the next three daily sessions.
The liquidation intensified further on May 19 amid a brutal liquidation across the market. Dogecoin fell to just $ 0.29, more than 74% from its all-time high of $ 0.76. The pseudonymous Asian Investor analyst noted that Dogecoin is in the third stage of a “massive bubble,” the exaggeration stage, which would soon continue with the phases of deflation and panic selling. Added:
“All exaggerations are over. When that exaggeration is over, people will look back at Dogecoin and wonder how wealth could have been created out of nothing.”
Dogecoin has recovered by almost 132% after hitting bottom at $ 0.29.