- Most traders opt for bullish bets despite the movement of the coin.
- DOGE Rise to $0.29 Now Stalled Thanks to Market Correction
Market analysis by AMBCrypto found that traders were bullish on Dogecoin (DOGE), despite its recent struggles. Previously, DOGE appeared to be heading towards $0.30. However, for the past few weeks, the price has been stuck between $0.18 and $0.22. At the time of writing, it had fallen to $0.17 after a 13% decline due to Bitcoin losing more than 5% in value over the past 12 hours.
However, information obtained from the Long/Short ratio revealed that traders were not perturbed by the performance. In fact, according to Coinglass data, Dogecoin’s 24-hour Long/Short ratio was 1.02.
The Long/Short ratio is an important metric used to check the sentiment of futures traders. A reading below 1 shows dominance of shorts. On the other hand, values above 1 indicate bullish sentiment and longer positions.
Source: Coinglass
DOGE is not ready yet
Alas, sentiment alone will not move DOGE out of its tight trading range. This is why AMBCrypto took other indicators into account. Open Interest (OI) was one of the indicators we evaluated.
OI monitors information on liquidity and interest in specific contracts in the market. This helps traders understand trends and potential movements. An increase in OI implies that market participants increase their net positions.
In this case, buyers were more aggressive than sellers. On the contrary, when the OI decreases, it is the opposite.
At press time, Dogecoin’s OI stood at $1.29 billion, despite the latest market correction. This is a sign that traders’ net positioning has remained fairly stable, despite market volatility.
Therefore, the effect on price, apart from external elements, could be minimal. If the OI holds and the market stabilizes, DOGE may resume its uptrend and perhaps attempt to surpass $020 and later, $0.25.
Source: Coinglass
On the other hand, a massive closing of net positions could invalidate this prediction, and DOGE could fall further on the charts.
Calm before chaos?
From a technical perspective, the DOGE/USD chart revealed that the coin’s momentum has weakened, especially after the latest market-wide correction. In fact, the crypto’s relative strength index (RSI) has fallen below the midpoint at 0.50.
Likewise, the dotted markers of the Parabolic SAR have changed positions above the price candles – a rather bearish sign.
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If the market stabilizes, DOGE has the potential to stop its downward trend and exit its consolidation phase. However, the altcoin will likely continue trading within its current price range over the coming days.
Bullish market sentiment and increased capital flows could trigger this rise. A tweet from Elon Musk could also do the trick.
News Source : ambcrypto.com
Gn bussni
