Dogecoin (DOGE) Under Pressure

Dogecoin (DOGE) has been struggling lately, with its exchange rate declining despite Open Interest remaining strong between $2.65 billion and $3.70 billion, suggesting that liquidity is still holding out, according to AMBCrypto.

This phase is often regarded as the time when smart investors begin planning for the next big move, considering that the cryptocurrency market is currently in a critical phase with high volatility and an instance of a major asset class rolling over.

Dogecoin (DOGE) Whales Strategy

As mentioned earlier, the consolidation of Dogecoin (DOGE) during this period of market uncertainty is a structural bullish signal. Unlike the other major crypto assets that experienced a decline, Dogecoin (DOGE) managed to maintain its range. In this highly volatile market, only assets with strong support can survive.

Despite price fluctuations, Open Interest for Dogecoin (DOGE) remains high, with the dominance of long positions reaching over 75.6% on the DOGE/USDT perpetual contract on Binance, indicating a clear bullish tendency among traders.

Over the past 24 hours, long positions have come under immense pressure, resulting in 72% of leverage-driven liquidations from long positions. However, traders continue to accumulate long positions, which suggests that they may be following the strategy of smart investors. This situation leaves Dogecoin (DOગ) stuck in a limited price movement, where selling pressure and low FOMO keep it stable.

But if the support from savvy investors continues, it is possible that Dogecoin (DOGE) will experience a sudden surge in price. Conversely, with the buildup of liquidity in derivatives, there is a risk of a big drop that could drag the Dogecoin (DOGE) price below its psychological floor of $0.20.

This content is intended to be informative and aims to enrich readers’ knowledge. Pintu collects this information from various relevant sources and is not influenced by any external parties. It is important to note that an asset’s past performance does not necessarily guarantee or determine its projected future performance.

Crypto trading carries inherent risks due to market volatility. Readers are advised to conduct their own research and invest wisely with funds they can afford to lose. Any investment decisions are the sole responsibility of the reader.