Reports of a spike in short position liquidations

Liquidation often occurs when traders are unable to fulfill the margin requirements for leveraged positions or when market circumstances change. However, a number of reasons, including as an anticipated Fed Pivot and historic short position liquidation, are linked to the present increase.

With $397.79 million and $301.30 million liquidations, respectively, Bitcoin and Ethereum lead the trend that developed over the last day, according to data from Coinglass.com. ADA and DOGE are two more tokens that have spearheaded the upsurge. Over the past seven days, DOGE and ADA have increased by 14.79% and 29.56%, respectively.

Has DOGE been impacted by Elon’s Twitter deal?
Over the last day, trading activity surrounding DOGE has increased dramatically. According to Coinmarketcap.com, DOGE’s trading activity has increased by 171%.

The reason for this development is that billionaire Elon Musk is finally getting close to finalizing his contentious Twitter agreement. If there are no further legal obstacles, the $44 billion takeover should be finished by Friday. Musk is known as Dogefather due to his outspoken support for Doge, and his comments and actions have frequently raised DOGE prices.

Over the past day, DOGE has increased by 17.82%.

More details on the surge
Both long and short liquidations of BTC-tracked futures contracts totaled about $368 million. ETH futures, at $356 million, and ADA futures, at $16 million, come behind Bitcoin.

In the meanwhile, there has been a 6.6% increase in position for open interest or long outstanding futures contracts that have not been resolved. This suggests that traders anticipate that the price of the main cryptocurrencies will continue to rise.

A short squeeze, an uncommon circumstance that causes a sharp increase in the price of tradable securities, could have been brought on by the recent liquidation of short holdings.