In the past 24 hours, Dogecoin [DOGE] has demonstrated exceptional performance, surpassing the top-ten cryptocurrencies in market capitalization with an impressive 9% increase. The current trading price of DOGE stands at $0.169, accompanied by a notable 38% spike in trading volumes as reported by CoinMarketCap.
This recent upturn has propelled Dogecoin’s gains over the last 30 days to 51%, establishing itself as one of the leading performers among cryptocurrencies. However, the journey for Dogecoin has not been without its challenges. Following a peak of $0.174 on October 29th, the coin experienced a sharp decline of approximately 22% in just five days, before ultimately rebounding.
Despite the initial setback, Dogecoin has demonstrated resilience by swiftly recovering from the bearish trend. Additionally, technical indicators now signify a renewed upward momentum. Noteworthy among these indicators is the imminent golden cross formation on the one-day chart, where the 50-day Simple Moving Average is on a rise, approaching convergence with the 200-day SMA. A potential crossover could signify a strengthening positive momentum, possibly indicating further price increases for DOGE.
Further validating the bullish outlook is the Relative Strength Index (RSI) standing at 64, signifying an increase in buying pressure and reinforcing the bullish sentiment surrounding Dogecoin.
These encouraging signals collectively indicate that Dogecoin has successfully navigated the previous bearish phase and is poised to sustain its current upward trajectory.
Rising Long Positions for Dogecoin
The escalating open interest in Dogecoin suggests a growing interest among derivative traders towards the meme-inspired cryptocurrency. At present, the open interest has surged by an impressive 17% within a 24-hour period, amounting to $1.24 billion.
This surge in open interest is primarily attributed to the increasing number of long positions being taken on Dogecoin. The long/short ratio has shifted from 0.93 to 1.02 in just two days, indicating a dominance of long traders over short traders. Notably, on Binance, 62% of active traders are currently holding long positions on DOGE.
While the surge in open interest and the shifting long/short ratio portray a positive sentiment, it also introduces the possibility of heightened price volatility.
Insights from Dogecoin’s Liquidation Heatmap
An analysis of Dogecoin’s liquidation heatmap, with a lookback period of one week, reveals a significant liquidation of previously held short positions following the coin’s upward momentum.
Notably, there has been a conspicuous decrease in liquidations below the current price level. However, a concentration of liquidations at $0.169 suggests this price point could serve as a key level influencing future price movements in an upward direction.
The liquidity influx surrounding DOGE, as depicted by the heatmap, aligns with the surge in trading volumes, signaling a growing interest among traders towards the token.
Whale Activity and Dogecoin
Data from IntoTheBlock highlights a resurgence in whale activity surrounding Dogecoin, with a 37% increase in large DOGE transactions exceeding $100,000 over the past two days, rising from 7.72 billion to 10.62 billion.
The uptick in whale activity could potentially bode well for Dogecoin, provided these significant traders are accumulating positions in the cryptocurrency. Despite this, the distribution of control over Dogecoin’s supply between whales and retail traders remains relatively balanced, highlighting the necessity for concerted efforts from both sides to propel prices upwards.