Dogecoin Soars 44% In A Single Day As Traders Convert Shiba Inu Profits To DOGE

On a few instances this week, the meme-based crypto-asset Shiba Inu (SHIB) reached an all-time high (ATH). The ATH for SHIB was about $0.00008616, and the price thereafter dropped 11% below the high. The value of SHIB has risen to $40 billion, allowing the Shiba Inu token market to break into the top ten crypto assets. Shiba Inu also managed to knock dogecoin (DOGE) down a step, from ninth to tenth place.

Shiba Inu rapidly moved Dogecoin to acquire the ninth-largest cryptocurrency by market capitalization, resulting in a DOGE price rise.

Dogecoin (DOGE) rose on October 28 as a result of large money outflows from Shiba Inu, its top meme coin rival’s market.

DOGE’s price surged by a little more than 44 percent to $0.3449, its intraday high. Its gains contrasted with SHIB’s losses during the same time period. On the other hand the, Dogecoin killer, fell over 28 percent to an intraday low of $0.000057; DOGE recorded its daily top in the same hour.

The rapid price increase also propelled DOGE’s market value to above $40 billion, a feat that Shiba Inu had accomplished just hours before, with the 2 cryptocurrencies now battling for ninth place in terms of market capitalization.

Traders flocked to Dogecoin exchanges hours after Elon Musk, the CEO of Tesla and SpaceX, tweeted about the parody cryptocurrency.

DOGE rose moreover 1,500 percent in the first five months of 2021 as a result of Musk’s earlier favorable tweets.

Shiba Inu soared by about 1,200 percent in October on expectations of a listing on Robinhood, a zero-fee trading platform located in the United States, as well as its push into the growing decentralized finance and nonfungible token markets with new product offerings.

However, based on some important criteria, including the Relative Strength Index, SHIB’s rapid bull run has made it expensive. As a result, it appears that spot and derivative traders have made the decision to protect and/or rotate their winnings.

Su Zhu, co-founder, CEO, and CIO of fund management company Three Arrows Capital, highlighted earlier on Thursday that traders shifted their easy-to-short Shiba Inu continuous exchange profits into the Dogecoin perpetual market as SHIB bottomed out at $0.00008854.

If traders shift profits from SHIB to DOGE, according to the former Deutsche Bank trader, DOGE might surge to $0.88.

DOGE lost around $20.8 million

The price swings of Dogecoin caught derivatives investors off guard, as they lost $20.8 million worth liquidations in the preceding 24 hours. After DOGE’s price fell to a weekly low of $0.2179 on Wednesday, almost $18.17 million worth of liquidations came from leveraged long positions.

Bears, on the other hand, suffered bigger losses than bulls in the current 12-hour timeframe, with $8.9 million in bearish Dogecoin trades liquidated versus $5.22 million in bullish Dogecoin trades.

In the previous 24 hours, however, Dogecoin traders were mostly short, with FTX and OKEx users being particularly optimistic, with 58 percent and 77 percent of their net holdings affected long, respectively.

SHIB liquidations totaled $31.41 million, the third-highest among all cryptocurrencies in the previous 24 hours, due to a rapid negative reversal in the Shiba Inu market.

In both the SHIB and DOGE markets, independent market analyst PostyXBT cautioned against excessive leverage.

“Play spot rather than leverage,” he said, noting that “volatility might easily wipe out before a major move in the right direction.”