The Dogecoin price is performing exceptionally well today and is up 7% in the last 24 hours to reach a value of $0.151. This surpasses other major cryptocurrencies such as Bitcoin and Ethereum, both of which are down about 2% today.
Dogecoin’s price increase is part of a broader upward trend in the memecoin sector. Similarly, Shiba Inu, Pepe and other so-called “memecoins” have seen significant increases in the past 24 hours.
Why is the Dogecoin price rising?
Crypto traders started buying Dogecoin and other memecoins en masse after the sudden and unexpected return of Keith Gill, the person behind the GameStop short squeeze in 2021, after a three-year absence.
Gill played a central role in the GameStop saga during the pandemic. Reddit traders turned the tables on hedge funds betting on the failure of the physical gaming store, leading to a more than 1,000% increase in the GME price in less than a month.
The period of the GameStop short squeeze coincided with the massive rise of memecoins such as Dogecoin and Shiba Inu, indicating increased risk sentiment among retail investors. This appears to be happening again, with the value of GameStop shares doubling just hours after Gill’s return, fueling the rally in the memecoin sector.
Huge Dogecoin liquidations
Dogecoin’s price increase over the past 24 hours was accompanied by DOGE liquidations worth $5.59 million, of which $3.96 million are short positions. When short positions are liquidated, traders who borrowed and sold DOGE must buy it back to cover their positions. This drives the price of Dogecoin further up.
Conclusion
Dogecoin’s price has risen to $0.151, outperforming Bitcoin and Ethereum, which were both down about 2% today. This rise is part of a broader trend in the memecoin sector, with significant gains for Shiba Inu, Pepe and other memecoins.
The rally was fueled by the unexpected return of Keith Gill, which increased risk sentiment among retail investors. Moreover, significant liquidations of short positions drove additional Dogecoin price increases.
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Source: https://newsbit.nl/waarom-stijgt-de-dogecoin-koers-vandaag/
