- Dogecoin (DOGE) records a 5% rise as Twitter gears up for a rebranding to X, while Bitcoin (BTC) declines to less than $29,100.
- Large liquidations of leveraged futures positions on Bitcoin contribute to its sudden dip, as analysts forecast potential further decline to the $27,000 level.
Amid a sea of red in the crypto markets, Dogecoin (DOGE) stood out as a beacon, recording as much as a 5% increase on the back of the upcoming Twitter rebranding. The meme cryptocurrency resisted the broader market downturn that saw Bitcoin (BTC) descend to under $29,100 during European morning trading hours.
Dogecoin Shines Amid Market Downtrend
Twitter, under the stewardship of Elon Musk, is transitioning to X, an entity within his artificial intelligence-focused conglomerate, X.AI. Early on Monday, Musk updated his bio to include the Dogecoin ticker logo, sparking speculation regarding Dogecoin’s potential larger role in the soon-to-be rebranded company.
In parallel, Bitcoin’s slip was potentially hastened by the liquidation of approximately $30 million worth of longs, amounting to over 96% of all leveraged futures positions. Liquidation is a process initiated by an exchange to forcibly close a trader’s leveraged position due to partial or total loss of the trader’s initial margin. This typically occurs when a trader fails to meet the margin requirements for maintaining a leveraged position or does not have adequate funds to keep the trade open.
Such large-scale liquidations often signify a local top or bottom of a price move, potentially allowing traders to adjust their strategies accordingly. This substantial liquidation could have been a contributing factor to Bitcoin’s rapid descent.
As Bitcoin dipped, several other major tokens followed suit. Tron’s TRX and Polygon’s MATIC fell 3.4%, while Solana’s SOL slipped nearly 5%.
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Analysts propose that the absence of bullish news and an overall quiet summer could continue to pressure Bitcoin prices downward, with some setting their sights on the $27,000 level.
Alex Kuptsikevich, FxPro’s senior market analyst, noted,
“If bearish pressure intensifies, the next significant support level would be $27,000, the lower boundary of the rising channel from the November lows and the 200-week moving average.”
Simons Peters, a markets analyst at eToro, echoed this sentiment, suggesting the recent quiet period has been unusually calm for top crypto assets in the market. The current softening of prices indicates investors are seeking positive news, yet with little available, it remains a “wait and see” situation.
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