Dogecoin Strives for New Yearly High as Most Metrics Turn Red

Dogecoin’s sustainable bull rally is called into question as key on-chain stats deliver mixed signals.

by Tadas Klimasevskis. Fact checked by: Ciaran Lawler, Editor: Stefan Trapp

Published: April 9, 2024 │ 4:00 PM GMT

Dogecoin dog flying in space towards the moon. — *Created by Gabor Kovacs from DailyCoin*

Dogecoin battles a key psychological price level of around $0.20.
Top cryptocurrency analyst warns of Dogecoin’s luring bull trap.
Derivatives data unveils which traders are most bullish on Dogecoin.

Dogecoin’s journey to a new yearly high at $0.224 on March 31 revitalized hopes of a repeat of the 2021 pattern to its all-time peak at $0.73. Zooming into the token’s monthly trading curve, the way up is challenged by a confluent sell wall above $0.20, a price range where DOGE was rejected thrice over the past 30 days.

Dogecoin Gets Static on Derivatives

Besides the piling sell pressure on the Spot markets, a notable decrease in Open Interest (OI) shaped Dogecoin’s Derivatives trading volume below $4 billion over the past 24 hours. While the overall long versus short daily ratio is bearish at 0.932, Binance’s customers are bullish on DOGE with a 5.54 long versus short position ratio.

On-chain data. — *On-chain data from CoinGlass reveals which platform traders are most bullish on DOGE*

As DOGE is now going through a market correction after claiming a weekly top of $0.207 yesterday, $4.55 million long positions were liquidated over 24 hours, according to the latest CoinGlass data. Short liquidations were kept below $1 million.

Bull Trap or Sustainable Bull Run?

This raises the question of whether the mixed signals are a rough market correction of the pre-claimed $0.17 key support levels or whether DOGE can attempt a new yearly high. According to crypto analyst DOGE Coach, there were hints of a bull trap on Monday when DOGE claimed $0.207 as its weekly top.

Tracking the orange line closely… hopefully we can push back up and break out.

Otherwise, expect more dip to low 17s.#doge https://t.co/WtV4lGTHb9 pic.twitter.com/PnubpG58Xk
— The Coach 𝕏Đ (@thedogecoach) April 9, 2024

The veteran trader sees the support cluster depicted in orange as a make-or-break moment for Dogecoin’s price trend. Judging from the status of Dogecoin’s combined liquidity books, the bull trap theory is even more plausible due to $137.59 million in pending sales, in contrast to $93 million in bids.

Meanwhile, three key on-chain metrics turned red for Dogecoin, including slight concentration and decreases in net network growth. The double-digit drop in transactions over $100,000 implies that whales are undecided about DOGE’s forthcoming price trajectory.

At press time, Dogecoin is exchanging hands at $0.1969 with a 5% downturn over the past 24 hours. DOGE is still 5.4% up weekly, while the latest 30-day period sums up Dogecoin’s gains to 11.8%.

On the Flipside

The price movement of Dogecoin also heavily depends on the developments on X, as the crypto-friendly social network is speculated to integrate Dogecoin into their Peer to Peer (P2P) payment system.