Amid the current state of uncertainty in the cryptocurrency market, Dogecoin [DOGE], the prominent and largest meme-inspired digital currency, continues to attract significant attention from crypto enthusiasts.
As of the time of this writing, major cryptocurrencies like Bitcoin [BTC] and Ethereum [ETH] are facing challenges, struggling to maintain their positions in the market.
81.44% of Binance Traders Favor DOGE’s Long Positions
Even in the midst of this market downturn, traders and investors have displayed unwavering interest and trust in Dogecoin, as per insights from the on-chain analytics platform Coinglass.
As per data from Binance, the long/short ratio for DOGEUSDT is currently at 4.53, indicating a prevailing bullish sentiment among traders. Presently, 81.9% of the top traders have opted for long positions, while 18.56% have chosen short positions.
This significant influx of long positions on Binance strongly signifies a positive sentiment among traders, despite the ongoing price fluctuations in the cryptocurrency sector.
Moreover, aside from the optimistic outlook of traders, long-term holders are also seen accumulating DOGE tokens, as suggested by on-chain data.
$54 million in DOGE Tokens Moved Off Exchanges
Recent data from Spot Inflows/Outflows reveals that exchanges have noted an outflow of approximately $54 million worth of DOGE memecoins over the past 48 hours.
This movement indicates that long-term holders might have withdrawn or acquired these substantial tokens while they were available at discounted rates, possibly in anticipation of events surrounding Donald Trump’s upcoming inauguration.
Examining Dogecoin’s Current Price Trends
These positive on-chain metrics come at a time when DOGE is approaching a critical support level of $0.30. During its previous encounter with this level, the memecoin observed a price surge of more than 25%, leading it to hit the $0.40 mark.
Speculations among experts and analysts now indicate a likelihood of a similar upward movement in the days ahead.
Technical analysis experts suggest that DOGE is currently perched at a significant support threshold of $0.30, setting the stage for a potential breakout in light of the prevailing market sentiment. Sustaining levels above $0.30 could pave the way for reaching the projected price target.
Conversely, a lack of market confidence leading to a breach of this support level followed by a close at a lower price could trigger a drop of about 25%, bringing the next support level into focus at $0.225.
As of now, DOGE is trading around $0.318, having witnessed a decline of more than 6.5% in the past 24 hours.
The accompanying surge in trading volume by 60% within the same period underlines increased engagement from traders and investors, particularly against the backdrop of market uncertainties.