Dogecoin's Weekend Rally Hits A Pause — Traders Betting On DOGE Longs Face Liquidation Worth $2.5M In A Single Day, Price Drops 4%

Dogecoin DOGE/USD surged over 10% on Saturday, catapulting its price from $0.078 to $0.090 but the rally seems to cool down now. 

What Happened: The rise is attributed to the buzz around the new “X payments” system.

At the time of writing, DOGE was down 4%, trading at $0.083. 

The change in DOGE's value comes as $2.65 million worth of Dogecoin long positions were liquidated in the last 24 hours, contributing to the total of $3.19 million in liquidations for the crypto, as per Coinglass data.

On-chain activity has shown a climb in the market cap of Dogecoin to approximately $11.8 billion, according to CoinMarketCap.

The surge comes after a dedicated payments account by the handle of @Xpayments went live on X. This development has led social media users to conjecture that the tech billionaire behind the platform may be making a foray into the sector of blockchain-driven payment services.

"Does this signal Elons move into blockchain based payments?" asked one user.

See More: Dogecoin HODLERs Are Beating Shiba Inu With 57% Landing In Profits, IntoTheBlock Data Reveals

Why It Matters: X’s entry into the finance industry and building upon its ability to perform licensed money operations across numerous American states.

Musk has several times publicly favored Dogecoin, even over Bitcoin BTC/USD, and has often vocalized his support for the meme-themed cryptocurrency.

Earlier in December, Alex Lewis, MyDoge Wallet Chief Technology Officer revealed that X has already applied for all the necessary licenses to become a custodial service, similar to PayPal, Venmo, or Cash App. "So you could just have a, you can have your bank account connected to X app, and then you have a Dogecoin balance as well that you can use for payments and tipping in parallel, so I honestly believe this was coming,” he added.

Photo via Shutterstock

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