Dogecoin (DOGE) saw a strong price rally on Tuesday, reaching nearly $0.42, following Bitcoin’s record rise past $94,000. The rally was short-lived, as DOGE subsequently fell back to around $0.39, continuing the coin’s characteristic price volatility. The rapid swings led to significant liquidations for futures traders, especially those betting against DOGE.
In just four hours, more than $6 million in short Dogecoin positions were liquidated, according to CoinGlass data. Long positions were also affected, with around $5.6 million liquidated during the same period. In total, approximately $25.5 million in DOGE futures positions were closed over 24 hours, with $14.7 million coming from short sellers. Notably, one trader reportedly lost $1.05 million in a short position during this period.
Dogecoin’s price surge aligns with continued bullish momentum in Bitcoin, which hit an all-time high of $94,000 earlier today. While Bitcoin’s record price has certainly contributed to the broader market rally, Dogecoin’s price action has been particularly noteworthy, as it has demonstrated substantial volatility despite the overall uptrend.
Dogecoin’s popularity has grown significantly over the years, thanks in part to the support of Tesla CEO Elon Musk, who has expressed his affinity for the cryptocurrency since 2019. Musk’s influence and frequent social media mentioned have helped fuel speculation and trading activity, further boosting DOGE’s profile in the market.
Dogecoin’s latest price movements highlight its volatility, as well as the risks associated with futures trading in the cryptocurrency market. Despite recent gains, the asset remains prone to wild swings, with traders facing potential liquidations when market conditions change rapidly.