Dogecoin (DOGE) experienced a sharp drop of 17.64%, a major blow for the performance of the asset market. This dramatic fall has aggravated its monthly losses, which are now 36.43%. The price of Doge is on a clear drop trajectory, marking a series of lower stockings, which points to a growth of the lowered feeling through the market.
Whale activity results in the market
A significant factor contributing to the drop in Dogecoin is large selling by whales – High Noue investors holds large quantities of Doge. During the last 24 hours, these whales have unloaded a total of 270 million Doge, creating downward pressure on the price. Whales generally engage in large -scale sales to lock profits, mitigate losses or react to unfavorable market conditions.
This large -scale liquidation exacerbated the sales pressure through the market, feeding the decline more while small retail investors follow the shale actions. The result is a broader change in feeling that has led many traders to liquidate long positions, contributing to the drop in current prices.
The derivative market reflects the lowering feeling
The downward trend is not limited to the cash market, because the indicators of the derivative market also have signs of increased pessimism. The financing rate, which follows the balance between long and shorts in term contracts, has turned into negative territory. From the latest data, the DOGE financing rate is at -0.0245%, which suggests that sellers now control the market. When this rate is negative, this means that short traders pay a bonus to long traders, more signaling a domination of the lowering feeling.
The metric of open interest (OI), which reflects the volume of unstable derivative contracts, has also experienced a sharp drop. OI for DOGE dropped by 30.08%, to 2.53 billion dollars. This substantial drop indicates that traders close their positions and remove liquidity, adding more momentum down to the market.
Liquidation of long positions increases
The lowering environment caused significant losses for long traders. In the past 24 hours only, $ 2.31 million in long positions have been liquidated, a contrast hit with only $ 99,880 in short positions. This disparity highlights the severity of the current downward trend, with more traders who have been forced to leave their long positions while the Doge price continues to drop. In the past 24 hours, a total of $ 69.46 million in long positions has been closed, which still underlines the widespread lower feeling.
The liquidation of long positions could lead to a cascade effect, because the price continues to dive and triggers more stop orders, exacerbating the pressure downwards.
Perspectives for Dogecoin: continuous downward trend
Currently, Dogecoin is found in the middle of a sustained lower cycle. Whale actions and the general change in feeling on the market suggest that cryptocurrency can continue to undergo short-term drops. Although the market remains volatile and unpredictable, traders will have to closely monitor any reversal sign, such as an increase in the volume of purchase or a change of derivative metrics.
In the current state of things, the lack of purchase pressure and the continuation of large -scale sales suggest that Doge could hit new stockings in the coming days or weeks. Until significant bullish catalysts are emerging, the lowering of Dogecoin perspectives seem firmly anchored, with little immediate relief in sight. Traders and investors will have to remain cautious and monitor any change in market dynamics that could point out a change in feeling.
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