Dogecoin is recording a major shift in its core on-chain metrics, as a mild price rebound is seen on-chain. The DOGE four-hour liquidation imbalance has lent credence to the major shift in investor behavior in the futures market, per data from CoinGlass.
Dogecoin short sellers in losses
Within this period under review, the Dogecoin liquidation imbalance shot up by 779% as the broader crypto market saw more than $321 million in combined derivatives losses.
Breaking it down, long traders recorded only a mild loss of $81,200 in the trailing four-hour period. This pales in comparison to the $714,310 recorded by short-position traders. On much larger time frames, the difference was also visible, with short traders largely dominating the loss chart.
Since the start of the year, DOGE liquidation imbalance trends have often helped define market momentum. While the indicators might signal a short-term outlook, it remains a major metric to predict what’ss next for the asset.
As of writing time, the price of Dogecoin has jumped by 5.62% in the past 24 hours to trade at $0.096. For weeks, the DOGE price has traded below the $0.10 price mark, a negative sentiment that is likely about to end.
Dogecoin catalyst to watch
It is worth noting that the uptick in the price of DOGE is arguably a result of its Bitcoin contagion. With the Bitcoin price now trading above the $70,000 support zone, altcoins like DOGE are benefiting.
However, for the uptrend to be sustained, Dogecoin needs better catalysts in the mid- to long term. The expectations from the Dogecoin ETF product have been sub-optimal, as it has resulted in a relatively lower institutional inflow.
With treasury firms also waiting out the 86% drawdown in Dogecoin’s price from its ATH, the market is now reliant on the influence of the BTC rally. In the short term, the positive switch in metrics like volume and open interest is helping to retain mild retail and corporate capital inflow.
Source: https://u.today/dogecoin-price-rebound-triggers-779-in-liquidation-imbalance
