With lots of profit-taking from its main rival (Shiba Inu), Dogecoin spiked today. The price of the joke cryptocurrency surged by more than 45% to set a new intra-day peak price of $0.3448.
DOGE Soars, SHIB Dips
Coincidentally, as DOGE was soaring, SHIB was dipping within the same time interval. SHIB dropped as much as 29% to record an intraday low of about $0.000056.
This renewed DOGE surge impacted its market cap positively. Its market cap of slightly more than $39B gives it a slight advantage and a higher ranking over Shiba Inu, whose market cap is slightly more than $38B. Hence, DOGE has replaced SHIB to occupy the tenth spot on the crypto rankings. But the two tokens will keep jostling for that position.
A few hours after Elon Musk‘s response to a Billy Markus tweet regarding crypto giveaway scams, there was an increase in DOGE purchases. Earlier in the year, Musk’s social support for the meme-themed cryptocurrency caused it to rise by an astonishing 1,500%.
Selling SHIB To Buy DOGE
This SHIB has been on a bullish run surging by about 1,250% so far this month. This bullish action was expected to enhance its listing on Robinhood‘s zero-fee trading app. It has also enjoyed a broader adoption in the DeFi and NFT space, especially among the recently launched products. However, key indicators such as the RSI indicate an overvaluation of SHIB’s bullish price action.
Hence, it would seem that shib bears are now taking profits but investing them in DOGE. A popular crypto analyst and fund manager, Su Zhu, agreed with the submission that traders are swapping their SHIB profits into the Dogecoin market. Su Zhu forecasted that DOGE might surge towards the $0.89 region if traders keep rotating their SHIB gains into DOGE.
DOGE Derivative Traders Lose Almost $21m This Past 24 Hours
Derivative traders were caught unawares with the DOGE price action. Thus, making them liquidate about $21m worth of DOGE assets within 24 hours. Almost 85% of this amount was from leveraged long bets following a DOGE 7-day low of $0.2180. Conversely, short-term traders are losing more than they are gaining compared to long-term traders in the current 12-hour trade window.
Short-term Dogecoin traders have liquidated about $9m worth of positions, while DOGE long-term have liquidated about $5.23m worth of positions within the same timeframe. Over the past 24 hours, Dogecoin traders have been bearish compared to FTX and Okex, which have been bullish. 59% of those trading FTX have taken long positions, compared to 78% of those trading Okex, who have also taken long positions.
The highest amount of liquidation in the past 24 hours occurred with SHIB. Traders took profits and liquidated positions worth $31.4m within this period. A popular crypto analyst, PostyXBT, has advised that traders play the DOGE and SHIB spot markets without leverage because the high volatility in those markets can liquidate an account before a massive swing in the profit direction.