Dogecoin Stuns Traders with 400% Liquidations Surge Amid 6% Price Spike in 24 Hours

Dogecoin's trading activity surprised investors as a 6% price jump led to a staggering 400% imbalance in short liquidations, totaling $7.96 million. The data highlights growing bullish sentiment despite market risks as crypto rebounds catch traders off guard.

Dogecoin Faces Unusual Trading Activity

Dogecoin (DOGE), the market leader in meme cryptocurrencies, has lately experienced unusual trading activity.

Specifically, as reported by CoinGlass, a massive imbalance occurred in the liquidations of DOGE perpetual futures positions, with the number of short positions exceeding the number of long positions by 400%.

So, if all Dogecoin holdings were liquidated for $9.94 million, there would be $1.98 million longs and $7.96 million shorts. That Dogecoin's price increased by 6% in a single day explains the disparity.

Massive Short Liquidations as Dogecoin Defies Expectations

It turns out that many were pessimistic about the popular meme coin's ability to pull off such a strong surge, and they bet against it, U.Today shares

There is a general trend in the market where shorts are experiencing more pain than longs; this is not exclusive to DOGE; $139.74 million of the $201.55 million liquidated in 24 hours were short positions, while $61.81 million were longs.

Volatility Creates Risks in Perpetual Futures Trading

This proves that trading cryptocurrencies, particularly perpetual futures, is dangerous at the moment, likely as a result of unexpected price spikes and rebounds. Since the market might unexpectedly shift, causing traders to suffer significant losses, they should exercise caution at the start of the new year.

There are still not many buyers in the market because most people are out enjoying themselves on the weekend and not paying attention to the digital asset charts.

On the flip side, it's obvious that, at least for the time being, the majority of market players are continuing to be betting on the bull market. Given November's events, it's reasonable to assume that January will bring more of the same.