Futures tracking the popular Dogecoin (DOGE) token racked up $26 million in liquidations in the past 24 hours, a higher-than-usual move, according to data from Coinglass. As per Coinglass, both long and short position holders were impacted equally. Meanwhile, longs (those who bet on) in Dogecoin’s liquidation reported $10.02 million, while shorts (those who bet against) saw $13 million. Traders on crypto exchange OKX were the most impacted, taking on $12 million in losses on Dogecoin futures positions. Open interest, or the number of unsettled futures contracts, on Dogecoin futures surged to over $580 million.
In addition to this, the rise also caused several other Shiba Inu-themed memecoins to jump multifold, with the sector jumping 14% on average. Large-cap tokens such as Shiba Inu (SHIB) rose up to 10%, while small-caps such as Floki (FLOKI), Kishu Inu (KISHU), and Baby Dogecoin (BABYDOGE) surged as much as 25%.
Such rises are unlikely to hold for the long term, however, with some traders warning that such moves are non-indicative of a broader trend.
“We do not believe that it is indicative of a long-term bull run. Quite the opposite,”
said Guilhem Chaumont, CEO of crypto trading firm Flowdesk, in a Telegram message.
“There is a regular pattern of crypto market uptrends with first, Bitcoin going through a bull run, then major altcoins pumping, and finally, tokens with small market caps. Since Bitcoin has been experiencing a relatively stable upward trend, memecoins’ rise would indicate the third phase, the end of the cycle. But there is no need to over-interpret such momentary price changes,” Chaumont said.
