Dogecoin (DOGE) Short Sellers Liquidated $6M as Meme Coin Rallies

Several Dogecoin future traders have been wiped out in the past 24 hours as the number one meme coin by market cap made a sudden upward move on Tuesday night.

Several Dogecoin future traders have been wiped out in the past 24 hours as the number one meme coin by market cap made a sudden upward move on Tuesday night.

According to data from CoinGecko, DOGE topped at $0.42 and then reversed to $0.39 at press time. The latest rally has brought massive financial losses to short traders. CoinGlass, a leading onchain analytics firm, reported Wednesday morning that 118,026 short positions were liquidated, with traders collectively losing $6 million.

What Are Short Trades?

In the world of crypto trading, short trades are those placed by traders who believe the price of a particular crypto asset will go down. If the asset’s price goes up, these trades are closed/liquidated, and involved traders lose money.

In the latest round of liquidations, one short trader on crypto exchange Binance is reported to have lost about $1.06 million, according to CoinGlass. Another trader got liquidated on Bybit for $504,000. Other crypto exchanges with significant liquidations include OKX and BingX.

Buzz Around D.O.G.E Fuels DOGE Rally

Dogecoin has had a good month so far. CoinGecko data shows it has rallied 169% in the past 30 days, outperforming almost all the top cryptocurrencies by market valuation. But why is the meme coin rallying? The surge is largely attributed to the hype around the creation of the Department of Government Efficiency (D.O.G.E), which will be led by Dogecoin’s fan and Tesla owner Elon Musk.

Musk, who has supported Dogecoin since 2019, campaigned actively for Donald Trump, promising to cut government fund wastage through the D.O.G.E agency. Analysts expect DOGE to perform exceptionally well when Elon starts working at his new department.

Crypto Market Update

Bitcoin hit $94,028 to set a new all-time high on Tuesday. However, it has dropped to $93,666, according to CoinGecko. As BTC achieves a new milestone, Ethereum, on the other hand, is performing poorly. The second-largest coin by market cap has shed 1.7% of its value in the last 24 hours to trade at $3,095, down 36% from its all-time high of $4,877. Similarly, BNB is down 1.8% to $611.

Meanwhile, XRP is up 2.1% today. Notably, it has recorded 7-day gains of 68.3% and now trades at $1.14.

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