Traders are not optimistic about Dogecoin (DOGE), which is abundant from the latest Long/Short Ratio. This is what Coinglass says, the Long/Short Ratio for Dogecoin is 0.90. This metric, which checks the balance between long and short holdings, shows that traders are generally bearish.
If the Long/Short Ratio is less than 1, it means that there are more short positions than long positions. This means that most traders think the price of Dogecoin will go down. DOGE was worth $0.15 at the time of the report, which is a 6.44% rise from the previous week.
Dogecoin’s Market Caution
Even though there has been a short-term rise, the overall market mood is still cautious, which suggests that the price of DOGE could go down.Recent studies have suggested that Dogecoin’s price could go down to $0.12, depending on a number of market factors. The Funding Rate is an important sign to keep an eye on.
It is similar to the Long/Short Ratio but gives you more information about how the market is moving. Funding shows how much it costs to keep an open contract position. If funding is positive, contract prices are higher than spot prices, and if it is negative, the opposite is true.
Data from Sanction shows that Dogecoin’s funding rate was 0.01% not long ago. A lower funding rate usually means that the price of DOGE will go down, which makes the bearish view even stronger. This situation suggests that people who sell perpetual contracts might soon get rich, which will make DOGE’s falling trend even stronger.
Recent information on liquidations adds to the market’s downward trend. DOGE has had a total of $1.79 million in liquidations in the last 24 hours, with $1.54 million in long positions and less than $250,000 in short positions. When exchanges stop leveraged positions because they don’t have enough margin, this is called a liquidation. This often starts new price trends.
Since long position liquidations are happening more often than short positions, Dogecoin’s price might run into trouble if it tries to rise. There is an immense risk, though, that the current wave of long liquidations will drive DOGE’s price below $0.12. If people who want to sell Dogecoin get even stronger, the price could fall even more, maybe even to $0.10.
