Dogecoin Jumps 44% In One Day As Traders Turn Shiba Inu Profits Into DOGE

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Dogecoin (DOGE) soared on October 28 amid massive capital rotations in the market of its main rival Shiba Inu (SHIB).

Notably, the DOGE price rose just over 44% to reach its intraday high of $ 0.3449. Its gains appeared in contrast to the losses of SHIB during the same period. On the flip side, the so-called Dogecoin Killer fell almost 28% to record an intraday low at around $ 0.00005700 – the same time DOGE printed its daily high.

SHIB / USD vs DOGE / USD daily price chart noting an inverse correlation. Source: TradingView

The sudden price spike also pushed Dogecoin’s market cap to over $ 40 billion, a courage Shiba Inu achieved hours before, with the two cryptocurrencies now battling shoulder to shoulder for ninth place by market cap. .

Traders started flocking to Dogecoin markets hours after Tesla and SpaceX CEO Elon Musk posted a new tweet about the cryptocurrency meme.

Musk’s earlier supportive tweets prompted DOGE to climb more than 1,500% in the first five months of 2021.

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Long DOGE, short SHIB

Shiba Inu rallied exponentially in the fourth quarter, growing about 1,200% in October in hopes of gaining a listing on Robinhood, a US-based no-cost trading app, and its foray into emerging decentralized finance (DeFi) and the non-fungible token. (NFT) with new product launches.

Nonetheless, SHIB’s supersonic bull run also made him overvalued based on some key metrics, including the Relative Strength Index. So it looks like the spot and derivatives traders have decided to secure / spin their profits.

Su Zhu, co-founder, CEO and CIO of fund management firm Three Arrow Capital noted earlier Thursday that traders had pivoted their easy-to-sell Shiba Inu perpetual swap profits – as SHIB peaked at 0.00008854 $ – on the Dogecoin Perpetual Market.

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The former Deutsche Bank trader suggested that DOGE could then rally at $ 0.88 if traders shift profits from SHIB to Dogecoin.

About $ 20.8 million DOGE rekt

Dogecoin’s price movements also caught derivatives traders off guard as they lost around $ 20.80 million in total closeouts over the previous 24 hours. About $ 18.17 million of those sell-offs emerged from leveraged long bets after the DOGE price fell to its weekly low of $ 0.2179 on Wednesday.

In contrast, the current 12-hour time frame saw bears take more losses than bulls, with $ 8.9 million in bearish Dogecoin bets liquidated against $ 5.22 million in bullish bets on the same token.

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Total DOGE liquidations on all stock exchanges. Source: ByBt.com

Overall, however, Dogecoin traders were mostly shorts over the past 24 hours, with FTX and OKEx users showing exceptionally bullish with 58% and 77% of their net long positions biased to long.

A sudden bearish reversal in the Shiba Inu market also led to liquidations of SHIB worth $ 31.41 million, the third highest among all cryptocurrencies in the previous 24 hours.

Related: Shiba Inu Risks Plummet With SHIB’s 574% Price Rise In October Close To Sold Out

PostyXBT, independent market analyst, warned on excessive leverage in the SHIB and DOGE markets.

“Play cash and not leverage,” he said, adding that “volatility could quite easily go away before a big move in the expected direction”.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of TBEN.com. Every investment and trading move comes with risk, you should do your own research before making a decision.