How far can Doge Price rally increase as short liquidations?

• Dogecoin Price Restcht 0.20 USD after they have broken out of bullish patterns from an opposite head and shoulders.
• The Doge rally ignites a number of liquidations with 1.6 million US dollars and 11.3 million US dollars shorts.
• Open interest rates rise by 18% to 2.17 billion US dollars in 24 hours and signal the dealer interest on the leading meme coin.
• The almost over-designed conditions of Dotecoin could delay or hinder an outbreak to $ 0.24.

Dogecoin (Doge) Price runs higher after they have increased over $ 0.20 and were traded by USD 0.21 at the time of writing. The upward trend of the leading Meme Coin reflects a broadly created bullish wave on the market, which is triggered by the trade agreement between the United States (USA) and the United Kingdom (Great Britain) on Thursday.

Dodelcoin rally triggers massive liquidation wave

The price of Dogecoin rose in a winding bullish candle on Thursday and broke out the short consolidation phase, which followed the recovery from the tariff in early April. The meme coin turned the 50-day exponential moving average (EMA) to the support by $ 0.18 and accelerated the upward trend over $ 0.20.

In the meantime, the rally has shaken market dynamics, especially for futures and option dealers, whereby the liquidations reached around 13 million US dollars over the last 24 hours. Short liquidations dominated 11.3 billion US dollars compared to $ 1.6 million for longs. This strong offset in the direction of short liquidations signals a short squeeze, in which an increase in price cladding forces short sellers to close positions and thus fuel the rally.

Dogecoin derivative market data | Source: Coinglass

The 18% open interest (OI) increases to 2.17 billion US dollars in order to increase dealer interest on the largest meme coin through market capitalization. In other words, the upward trend in Doge’s price encourages investors to deal with a longer rally.

In addition, the long ratio of 2.4602 in Binance shows that long positions mainly drive the OI increase, since dealers assign more capital for bullish bets.

An increase in the commercial volume from 74.49% to 4.5 billion US dollars reinforces the OI and supports the increased market activity. A high volume during an upward trend, as in Doge, often confirms a strong bullish dynamic.

How far can Dogecoins go rally?

The price of Dogecoin shows a strong bullish structure after in the following daily table has inverted and confirmed an opposite head and shoulder pattern. The breakout on Thursday predicted an increase of around 33% to $ 0.24. The goal is determined by measuring the height of the pattern from the neckline to the head and extrapolating above the outbreak point.

Since DOGE Support over the 100-dayaa strives for $ 0.20, there is a high probability that the upward trend will continue to mark the goal of the inverse head and shoulder patterns in the upcoming sessions at $ 0.24.

The brand average convergence divergence (MACD) indicator increases the optimistic structure over the center line. When the green histograms grow, they indicate a stronger tailwind that indicates a continued increase in price.

Doge/USD Daily diagram

However, dealers have to prepare for various results as price ratings from Dotecoin, including a possible reversal. The relative strength index (RSI) impulse indicator enters the overbought region with 70.31, which implies a robust upward trend.

Remarkably, the overbought conditions due to profit support and other market dynamics are often preceded by de -lies. If Dogy withdraws from USD 0.20 via the 100-dayema, the dealers would look for the 50-dayema ​​at 0.18 USD for support and liquidity before trying to break a further outbreak.

(This story was corrected on May 9th at 10:07 GMT to say that overbought conditions are often preceded by the access data due to profit supervision and not in oversized conditions.)