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Dogecoin market capitalization had surged $2.8 billion since Feb. 23, when a SpaceX rocket powered the first US moon landing in 50 years.
Memecoin markets have been on a tear over the past week, with DOGE joining the likes of PEPE and BONK on the list of crypto’s top gainers. Market trends highlight how Elon Musk’s SpaceX role in a recent landmark moon landing mission may have propelled Dogecoin prices.
Dogecoin market valuation up $2.8 billion since moon landing
On Feb. 23, Intuitive Machines Odysseus lunar lander, powered by a SpaceX rocket, became the first American spacecraft to land on the moon since Apollo 17 in 1972. Elon Musk’s connection to the Dogecoin community has been well publicized recently.
DOGE entered a remarkable price uptrend shortly after the successful moon landing news broke.
At press time on Feb. 28, market data shows that DOGE price has jumped by 21.7%, representing a $2.8 billion surge in market capitalization since the Feb. 23 event.
Other top-ranked memecoins like BONK, PEPE, and Shiba Inu (SHIB) have also recorded sizable gains during that period. However, Dogecoin’s market capitalization growth is significantly higher than its rival meme tokens.
Dogecoin has received significantly more capital inflows in the past week, and Elon Musk’s SpaceX’s role in the moon landing may have been pivotal. Given the timing and historical trends between Dogecoin and bullish events surrounding Elon Musk’s affiliated companies, more bullish price action could follow.
DOGE bears at risk of a potential short squeeze
Since the rally began on Feb. 23, DOGE price has been on a relentless rally, clearing the $0.10 mark for the first time in 2024. After five days on the uptrend, events unfolding in the derivatives markets provide fresh insights that the bears could be at risk of a significant short squeeze.
The CoinGlass Liquidations chart depicts the value of futures contracts positions forcibly closed or liquidated within a 24-hour. By observing the frequency and magnitude of liquidations, traders can infer the direction and degree of swings in market sentiment.
On Feb. 27, DOGE short traders suffered $4.3 million in liquidations, the highest losses for the bears since Dec. 6.
Historically, a dramatic surge in short liquidations is often an early sign of a potential short squeeze, propelling prices higher. A short squeeze is a rare market situation where many short traders make frantic purchases to avoid margin calls and cover their short positions.
The rush to buy can amplify the price increase, leading to a cascade of short covering and further price appreciation.
High levels of liquidations may indicate excessive leverage among traders and susceptibility to intense price swings.
This phenomenon was observed the last time DOGE short traders recorded liquidations greater than $4 million. When $5.3 million shorts were liquidated on Dec. 6, Dogecoin price rapidly rose another 13% to a new yearly peak of $0.11 within the next 5 trading days.
In summary, bullish headwinds from SpaceX’s role in the latest moon landing and frantic purchases from futures traders scrambling to avert margin calls could form a significant catalyst for another DOGE price upswing in the days ahead.
DOGE price forecast: Breaking $0.10 could trigger bigger gains
Based on the prevailing derivative market trends, DOGE’s price appears poised for another leg-up toward $0.15. The Bollinger bands technical indicator further affirms this bullish DOGE price prediction.
With DOGE’s price currently at $0.098, the upper Bollinger band has formed an upward slope. Traders often interpret this as a bullish signal, indicating that the uptrend will likely strengthen further.
However, bullish investors might encounter resistance around the psychological barrier of $0.1 in the near term. Nevertheless, if bears anticipate short-covering purchases persist, another upsurge toward the $0.15 mark is possible.
On the downside, the reversal below $0.085 could put the bears back in the driving seat. However, as depicted by the 20-day SMA, the bulls will likely mount a major support buy-wall at the $0.086 area.
This article first appeared at crypto.news
