Doge Gains 40%+ as Traders Book Profit in Shiba Inu
Dogecoin (DOGE) surged on October 28 as a result of large capital outflows from its top meme currency rival i.e. Shiba Inu (SHIB). It’s worth noting that the price of DOGE increased by a little more than 44 percent to hit an intraday high of $0.3449.
During the same time period, profit booking was seen SHIB, which ended up in red zone. Specifically, the so-called “Dogecoin killer” fell over 28% to reach an intraday low of around $0.00005620; at the same time, DOGE reached its daily high.
The rapid price spike also increased DOGE’s market capitalization to more than $40 billion, a feat that Shiba Inu had accomplished only hours before, with the two cryptocurrencies now shoulder-to-shoulder and vying for ninth position in terms of market capitalization, respectively.
Trading activity in Dogecoin markets exploded when Elon Musk, the CEO of Tesla and SpaceX, tweeted about the parody cryptocurrency. Notably, previous positive tweets had sparked a 1500% rally in Doge in the initial five months of 2021.
Towards the end of the third quarter, Shiba Inu experienced an exponential increase in value, rising by approximately 1,200 percent in October on expectations that it would be listed on Robinhood, a United States-based zero-fee trading app, as well as its entry into the nascent decentralized finance and non-fungible token sectors through fresh product launches.
Although SHIB has had a meteoric rise in value, several critical measures, such as the Relative Strength Index, indicate that the stock is now overpriced. As a result, it seems that spot and derivative traders have made the decision to protect and/or rotate their winnings.
On Thursday, Su Zhu, a co-founder, CEO, and chief information officer of fund management firm Three Arrows Capital, noted that traders were transferring profits from the easy-to-short Shiba Inu perpetual swap market — at a time when SHIB reached a high of $0.00008854 — to the Dogecoin perpetual market, which he described as “very liquid.”
The former Deutsche Bank trader said that if traders shift their gains from SHIB to DOGE, the cryptocurrency might surge to $0.88 in the near future.
Because to Dogecoin’s price movements, futures traders were taken off guard, and they suffered a total loss of around $20.8 million in total liquidations during the preceding 24 hours.
On Wednesday, DOGE’s price fell to a new low of $0.2179 a share, resulting in liquidations of approximately $18.17 million. The liquidations were the result of leveraged long positions.
Bears, on the other hand, suffered more losses than bulls over the current 12-hour period, with $8.9 million worth of bearish Dogecoin bets being liquidated compared to $5.22 million worth of bullish Dogecoin bets involving the same cryptocurrency.
FTX and OKEx users, on the other hand, turned out to be particularly bullish, with 58 percent and 77 percent of their net holdings skewed long, correspondingly, in the past 24 hours, with the bulk of Dogecoin traders short in the last 24 hours.
there are no promises in crypto, except from scammers.
the people telling the truth will tell you that it’s just all about risk. your profits only come from other people taking their own risk. if you lose money, you paid for someone else’s risk.
ultimately, that is your choice.
— Shibetoshi Nakamoto (@BillyM2k) October 27, 2021
88e-6 $shib touched
— Zhu Su 🔺 (@zhusu) October 28, 2021
SHIB liquidations of $31.41 million, the third-highest total among all cryptocurrencies in the preceding 24 hours, were triggered by a dramatic negative turn in the market for the Shiba Inu cryptocurrency. PostyXBT, an independent market analyst, issued a warning regarding high leverage in both the SHIB and DOGE markets, according to the company.
“Try to play spot rather than leverage,” he said, noting that “volatility might very quickly wipe away profits before a significant move in the anticipated direction.”