 ▲ Dogecoin, Dollar/ChatGPT-generated image |
Dogecoin (DOGE) is showing a strong rebound, triggering a wave of short position liquidations in the futures market. The rally has expanded the liquidation imbalance to as high as 779%, serving as a catalyst that is fueling further price momentum.
According to crypto-focused media outlet U.Today on March 10 (local time), Dogecoin’s price rebounded sharply from its lows, causing a large-scale liquidation event. An analysis of Coinglass data revealed that over the past 24 hours, short liquidations overwhelmingly surpassed long liquidations, pushing market imbalance to extreme levels. The 779% imbalance indicates that traders betting on a decline were forced to close positions after being caught off guard by the unexpected rebound.
Dogecoin is currently attempting to break through a key resistance level near $0.17. As the price rebounds, investors holding short positions are placing buy orders to lock in losses, triggering a short squeeze that is further amplifying the upward movement. Market experts believe this liquidation imbalance will help establish short-term downside support for the price. As speculative bearish forces retreat, buying interest is flowing in, accompanied by rising trading volume.
Technical indicators show that although the Relative Strength Index (RSI) is approaching overbought territory, upward momentum remains strong. Dogecoin’s rally, coupled with Bitcoin’s (BTC) recovery, is improving overall investor sentiment across the meme coin ecosystem. Notably, large movements from whale addresses have been detected, raising expectations for additional price gains.
Market participants are closely watching whether Dogecoin can break above $0.18, viewing it as a watershed moment for the trend ahead. Following the large-scale short liquidations, the key focus is whether sustained spot buying will continue to flow into the market. Dogecoin is currently stabilizing above major moving averages as it attempts to establish a new support level.
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