Recently, Dogecoin [DOGE], the well-known and largest meme-based cryptocurrency, has been receiving significant attention from cryptocurrency enthusiasts amidst the current market instability.
As of the time of writing, the general cryptocurrency market, which includes prominent assets such as Bitcoin [BTC], Ethereum [ETH], and others, seemed to be facing challenges.
The Majority of Traders on Binance are Holding DOGE’s Long Positions
Despite the downward trend in the market, traders and investors have displayed strong interest and confidence in Dogecoin, as per data from the on-chain analytics firm Coinglass.
The ratio of long to short positions for DOGEUSDT on Binance currently stands at 4.53, reflecting a strong bullish sentiment among traders. At the current moment, 81.9% of top traders are holding long positions, while 18.56% are holding short positions.
The significant number of long positions taken by Binance traders clearly indicates a bullish sentiment despite the continuous trend of price corrections across the cryptocurrency market.
In addition to the bullish sentiment among traders, there is evidence that long-term holders are accumulating tokens, as indicated by on-chain data.
A Total of $54 Million in DOGE Tokens has been Moved out of Exchanges
Information from Spot Inflows/Outflows shows that exchanges have seen a significant outflow of $54 million worth of DOGE tokens in the last 48 hours.
This movement suggests that long-term holders have either withdrawn or acquired a substantial amount of tokens while they are being traded at discounted prices leading up to Donald Trump’s inauguration.
Current Price Movement of Dogecoin
These positive on-chain metrics align with DOGE reaching a critical level of support at $0.30. When the meme-based coin previously hit this level, it experienced a price surge of more than 25%, reaching $0.40.
Currently, experts and analysts anticipate a similar uptrend in the coming days.
Based on expert technical analysis, DOGE is positioned at a crucial support level of $0.30, which represents a pivotal moment considering the prevailing market sentiment. Should DOGE hold above $0.30, there is a high likelihood that it could achieve the projected level.
However, if the sentiment does not shift and the price drops below this support level and closes lower, there is a possibility of a 25% decline to the subsequent support at $0.225.
At present, DOGE is hovering around $0.318, experiencing a price drop of more than 6.5% in the last 24 hours.
During the same period, its trading volume surged by 60%, indicating increased engagement from traders and investors amid the market’s uncertainty.