Dogecoin Price Rebound Triggers 779% in Liquidation Imbalance

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Dogecoin is recording a major shift in its core on-chain metrics, as a mild price rebound is seen on-chain. The DOGE four-hour liquidation imbalance has lent credence to the major shift in investor behavior in the futures market, per data from CoinGlass. Within this period under review, the Dogecoin liquidation imbalance shot up by 779% as the broader crypto market saw more than $321 million in combined derivatives losses. Breaking it down, long traders recorded only a mild loss of $81,200 in the trailing four-hour period. This pales in comparison to the $714,310 recorded by short-position traders. On much larger time frames, the difference was also visible, with short traders largely dominating the loss chart. Since the start of the year, DOGE liquidation imbalance trends have often helped define market momentum. While the indicators might signal a short-term outlook, it remains a major metric to predict what'ss next for the asset. As of writing time, the price of Dogecoin has jumped by 5.62% in the past 24 hours to trade at $0.096. For weeks, the DOGE price has traded below the $0.10 price mark, a negative sentiment that is likely about to end. It is worth noting that the uptick in the price of DOGE is arguably a result of its Bitcoin contagion. With  the Bitcoin price now trading above the $70,000 support zone, altcoins like DOGE are benefiting. However, for the uptrend to be sustained, Dogecoin needs better catalysts in the mid- to long term. Th...