Dogecoin (DOGE) has found support at the $0.250 level, experiencing limited growth. Severe liquidations on-chain appear to be fading.
Dogecoin Liquidation Imbalance Narrows
According to CoinGlass data, total liquidation in the last 24 hours stood at $2.72 million. Long position traders saw $1.69 million wiped out, while short positions accounted for $1.03 million. This amounts to a total of 10,571,652 DOGE liquidated within 24 hours. The liquidation imbalance is less significant than previous ones, with long liquidations exceeding short liquidations by just $660,000, leading to a slight price increase.
Will Increasing Trading Volume Make a Difference?
CoinMarketCap data shows that DOGE has climbed slightly by 0.94% to trade at $0.2572. The trading volume has significantly increased by 13.41%, reaching $1.17 billion within the same timeframe. This indicates renewed interest from market participants willing to invest in the meme coin.
Outlook for Dogecoin
The news of a possible DOGE ETF approval might have fueled investors' confidence. The U.S. Securities and Exchange Commission (SEC) recently acknowledged the 19b-4 application of Grayscale for a DOGE ETF. While this does not directly equal approval, it has sparked hope among the community. Analysts opine that for Dogecoin to retest its $0.30 level, sustained trading volume could thin out price volatility and prevent the 'death cross' that emerged earlier.
Despite facing liquidation and sideways movement, increasing trading volume and a potential ETF approval could support growth and stabilize Dogecoin in the market.
