Dogecoin (DOGE) Price Leaps 14% After Brutal Short Squeeze

Where is Dogecoin (DOGE) Price Going After 150% Rally? Trading Experts Weigh In

Dogecoin (DOGE) price gained surprisingly bullish momentum, appreciating by over 12% in the last day, trading at $0.09064. High trade volumes supported the price pump as 24-hour volumes surged by 41.60%.

Apart from high trade volumes, though, there were other reasons behind the recent DOGE price pump. Seemingly the price pump stemmed from a bullish perpetual market. However, the crucial question remained whether this bullish momentum would sustain and for how long. 

Dogecoin Perpetual Market Flourishes 

Dogecoin open interest saw a sudden 30.11% rise and stood at $292.6 million at press time. Positive changes in the Dogecoin perpetual market could play a key role in its short-term price appreciation. 

DOGE open interest | Source: Coinalyze

Alongside spiking open interest, DOGE funding rate was in positive territory. With open interest rising, the funding rate positive, and price action green, the same signaled towards incoming bullish price action. 

Dogecoin (DOGE) funding rate  | Source: Coinalyze
DOGE funding rate  | Source: Coinalyze

Furthermore, short liquidations on Binance worth over $1.2 million supported the short-term bullish price action DOGE saw. 

Dogecoin (DOGE) short liquidations | Source: Coinalyze
DOGE short liquidations | Source: Coinalyze

Around $2.4 million in liquidations took place in the DOGE market, with $1.8 million in short liquidations and $694,000 long liquidations. 

While Dogecoin had a glimmering spot and futures price action, on-chain metrics for the coin didn’t necessarily glow. 

Wave of Price Volatility for DOGE

Dogecoin volatility was at all-time high yearly levels. A major uptick in volatility usually leads to significant price swings in either direction. At press time, DOGE volatility was around 206%, a level last seen in May 2021. 

Dogecoin (DOGE) volatility | Source: IntoTheBlock
DOGE volatility | Source: IntoTheBlock

Dogecoin Daily Active Addresses had been declining for some time. Seven-day active addresses fell by 20.22%, while new addresses dropped by 8.67%. In addition to that, DOGE whales have maintained a cautious stance. 

After the FTX fall, the largest whale cohort with 10 million to infinity coins reduced their holdings by close to one billion DOGE. 

DOGE Supply Distribution by balance of addresses | Source: Sanbase 
DOGE Supply Distribution by the balance of addresses | Source: Sanbase 

All in all, it seemed like DOGE price could be undergoing a typical Friday pump which often results in weekend losses. With volatility at yearly high levels, price movement in either direction could be expected. 

For DOGE In/Out of Money Around Price Indicator from IntoTheBlock showed the next support at $0.084, where 75,640 addresses hold 14.35 billion DOGE. 

Dogecoin In/Out of Money Around Price Indicator | Source: IntoTheBlock 
Dogecoin In/Out of Money Around Price Indicator | Source: IntoTheBlock 

On the upside, there seemed to be no major barrier until the $0.100 mark, which can aid some decent upside for DOGE price. 

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