DOGE Struggles to Rally As Liquidations Jump-Scare Holders

Is DOGE prepared to overcome the selling pressure as liquidated long positions mount to $912K?

Doge talking about pressure for his coin with his pal the pug.
Created by Kornelija Poderskytė from DailyCoin
  • DOGE’s gradual consolidation phase to end, explains top analyst.
  • Dogecoin’s Open Interest (OI) shot up 116% in the last 24 hours.
  • Pending sales across crypto exchanges pile up to $374 million.

Dogecoin has shown reluctant price movement since last week, as it hovers around the $0.08 price range. However, a breakthrough in this prolonged consolidation phase is likely, according to chart analyst Ali Martinez.

Using the Bollinger Bands, the analyst identified the tightest squeeze in Dogecoin’s four-hour price movement on February 5, 2024. The Bollinger Bands, shaped as envelopes dynamically shrinking or enlarging according to price fluctuations, hint at price volatility. Unprecedented since October 2023, the short squeeze forecasts either bears or bulls taking full control of the price movement after an intense duel.

Since the message, Dogecoin has inked 1% gains but trades below the crucial $0.08 support line. DOGE soared 1095% in new wallet addresses and has been a top pick in derivatives trading, witnessing $631.7k in long position liquidations over the past 24 hours, according to Coinalyze.

Pending Sells Put Extra Pressure on DOGE

While Monday’s price movement fetched DOGE 1% profits, the rise in trading activity has bullish some of the key on-chain metrics. Dogecoin’s net network growth is up 2.25%, according to IntoTheBlock. However, a large part of this is due to many holders aiming to sell. Dogecoin’s combined order book shows $374 million in pending sales, outweighing the $301 million in bids, according to blockchain research platform CoinPaprika.

On the other hand, some crypto whales are topping up their DOGE bags. Today, a Binance whale was spotted to have purchased 15.71M DOGE at $0.0802. Spending $1.24 million on the Binance order, the whale’s accumulation move was done in 13 minutes.

Indeed, cryptocurrency whales racking up Dogecoin in the millions are favorable for a bullish scenario, but the 116% derivatives volume increase came after a hefty $912K liquidation in long positions. If crypto bears continue to be more profitable than the bulls, the bearish tendency could send DOGE to retest the massive support cluster at $0.0777. At press time, DOGE is changing hands at $0.080, according to CoinGecko.

On The Flipside

  • Dogecoin’s candlesticks suggest an overbought position, with the Relative Strength Index (RSI) scales pointing to 71.69 on the real-time four-hour charts.

Why This Matters

Many crypto whales consider Dogecoin a long-term investment due to its longevity and high publicity.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.