Dogecoin Looming Plunge: Factors Point Toward An Imminent Significant Decline
16 Agosto 2023 - 8:40AM
NEWSBTC
Dogecoin (DOGE) has recently witnessed a gradual decline in both
its price and Open Interest over the past three days. These
developments have raised concerns of a bearish sentiment in the
futures market. In a trend that has been unfolding over the last
three days, Dogecoin’s price has experienced a steady descent,
accompanied by a decrease in Open Interest. Open Interest refers to
the total number of active contracts in the futures market. Its
decline is often indicative of waning enthusiasm among traders and
investors, suggesting a prevailing bearish sentiment. Related
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Positive Impact On Price? OI is a crucial metric in the
cryptocurrency market, revealing the number of outstanding
contracts that have not yet been settled. A decrease in this key
area can signify that traders are closing their positions,
potentially anticipating further price declines. Dogecoin
Open Interest data. Source: Coinalyze DOGE Bearish Sentiment
Evident Despite demonstrating some demand, Dogecoin’s price
analysis points towards a further 5% drop. As of the most recent
data from CoinGecko, the current DOGE price is $0.070578. In the
last 24 hours alone, the meme coin suffered a 5.0% drop, while its
seven-day performance showed a decline of nearly 5%. The downward
trajectory intensified as the market structure of DOGE slipped
below the $0.075 mark earlier in the week. The price report noted
that amidst the prevailing bearish sentiment, the On-Balance-Volume
(OBV) indicator exhibited an opposing trend. Over the past week,
the OBV steadily climbed, suggesting an increase in buying
pressure. DOGE market cap at $9.8 billion today. Chart:
TradingView.com This juxtaposition underscores the complexity of
market dynamics and indicates that while recent losses have been
incurred, the underlying demand for Dogecoin might be stronger than
anticipated. Ancient Dogecoin Whales Resurface In a surprising turn
of events, the crypto community has observed the reawakening of
four ancient Dogecoin whales in 2023. These whales, who had
maintained a prolonged period of inactivity spanning over nine
years, suddenly sprang into action. Collectively, they have
transferred a staggering sum of 6,818,192 DOGE, amounting to
approximately $557,157, according to data from Whale Alert. Related
Reading: Shiba Inu Bulls On The Horizon? Substantial Selling
Pressure Seen Dropping The emergence of these ancient whales and
their substantial movements raises questions about potential market
impact. Their actions could potentially inject volatility into the
already turbulent Dogecoin market. While the importance of these
movements remains uncertain, they underscore the multifaceted
nature and complexities that are deeply ingrained within the realm
of cryptocurrency trading. These fluctuations, whether they
manifest as sudden surges or dramatic plunges in market values,
serve as a stark reminder of the volatility that characterizes this
nascent yet transformative financial landscape. (This site’s
content should not be construed as investment advice. Investing
involves risk. When you invest, your capital is subject to risk).
Featured image from iStock
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