Dogecoin rallies on $570M liquidations despite bearish death cross

Dogecoin (DOGE) rose as the crypto market rebounded Tuesday, even after a bearish technical signal appeared. On the 3-hour chart, a 50-period moving average reportedly fell below the 200-period moving average (a “death cross”), typically warning of weakening short-term momentum. However, DOGE moved higher before the pattern fully formed, helping force bearish traders to close. Liquidation data highlighted the squeeze effect. In the last 24 hours, about $570 million of crypto positions were liquidated, with shorts dominating. Roughly $2.53 million in short liquidations were closed versus about $938,590 in long liquidations, indicating traders positioned for a drop were caught offside. When shorts are liquidated, sellers exit and buyers must repurchase, adding upward pressure that can overpower negative indicators in the short run. The broader rally also tracked improving macro conditions: U.S. equities extended Monday’s relief, while the U.S. dollar weakened as traders reduced expectations for aggressive Federal Reserve tightening. That supportive backdrop lifted risk assets, pulling major coins higher alongside DOGE. DOGE reportedly tested resistance near $0.096, with $0.12 and $0.16 cited as next upside levels, while the bearish crossover on lower time frames kept risk elevated.