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The Dogecoin bull run is far from done, due to its Coinbase launch and concurrent DOGE price rise.
On a 24-hour adjusted timescale, Dogecoin (DOGE) prices rose over 40% on Wednesday, shaking out more than $16 million of negative leverage in just one hour while virtually regaining its pre-crash peak.
Leveraged bearish traders caught themselves on the wrong side of trading after Coinbase Pro, a United States-based crypto trading platform, announced that it would enable DOGE trading to its portal from Thursday.
“Starting immediately, we will begin accepting inbound transfers of DOGE to Coinbase Pro,” Coinbase confirmed in its blog post.
“Once sufficient supply of DOGE is established on the platform, trading on our DOGE-USD, DOGE-BTC, DOGE-EUR, DOGE-GBP, and DOGE-USDT order books will launch in three phases, post-only, limit-only and full trading.”
The news prompted a sudden overnight spike across DOGE spot markets, burning speculators who had placed bets on the cryptocurrency’s price decline.
A bored market gravitates to $DOGE.
Spot volume dominance (orange) compared to rest of the alts (blue) on Binance spot. pic.twitter.com/PlkdOJkf0V
— Hsaka (@HsakaTrades) June 2, 2021
After beginning in the green on Wednesday, the DOGE/USD exchange rate increased by up to $0.064, or 17.34 percent. The pair hit an intraday high of $0.454 before a slight downwards retracement headed by profit-takers. DOGE was trading at $0.434 as of 12:07 UTC.
Dogecoin also performed well in comparison to its main rival asset, Bitcoin (BTC). The DOGE/BTC exchange rate increased by 33% in the past 24 hours, wiping off all losses acquired against Bitcoin after the May 19 meltdown.
The past 24 hours witnessed Dogecoin short liquidations worth $47.83 million.
Bullish calls resurface
Dogecoin’s recent surge has also encouraged commentators to forecast a $1 valuation in the coming sessions, a figure DOGE/USD fell short of after hitting at $0.76 on Binance.
Primordial Hashrate, a crypto-focused newsletter service, for example, highlighted Dogecoin’s Relative Strength Index (RSI) — a technical indicator that measures an asset’s present and past strength or weakness — as a hint to bid DOGE/USD approaching $1.
— Primordial Hashrate ❗ (@prhashrate) June 2, 2021
Ronnie Moas, founder of Standpoint Research — a Miami-based financial research startup — noted that Dogecoin’s addition on Coinbase Pro, a platform most popular among professional crypto traders, would open DOGE to “million more investors worldwide.”
Dogecoin gained traction with traders largely as a result of Elon Musk’s support. The Tesla inventor and CEO tweeted so many times in support of Dogecoin that he jokingly referred to himself as “the Dogefather,” while also lately claiming to be “Dogecoin’s master.”
Musk’s fame had a role in driving DOGE/USD prices up by more over 15,300 percent in 2021, with its market valuation exceeding even Airbnb and Infosys.
However, the rapid price rise has also sparked fears of a possible bubble, or FUD. The market nearly collapsed when Musk referred to Dogecoin as a “hustle” during his Saturday Night Live performance on May 8, resulting in a 45 percent price drop over the next three daily sessions.
The sell-off intensified further on May 19 amid a market-wide brutal sell-off. Dogecoin fell to as low as $0.29, down more than 74% from its all-time high of $0.76. Pseudonymous analyst the Asian Investor noted that Dogecoin is in the third stage of a “massive bubble” — the hype stage — that would soon follow up with deflation and panic-selling phases. He added:
“All hypes end. When this hype is over, people will look back on Dogecoin and wonder how wealth could have ever been created out of nothing.”
Dogecoin has rebounded by almost 132% after bottoming out at $0.29.