Dogecoin Traders Remain Extremely Bullish Despite Price Crash, Here Are The Numbers

by

Over the past 24 hours, Dogecoin has continued to follow its trend of consolidation, showing a decrease in price by approximately 14.5% over the last week. Yet, this downward trend seems not to have diminished the overall positive feeling towards Dogecoin, particularly when viewed from a long-term perspective. In line with the ongoing optimism surrounding Dogecoin, crypto analyst Ali Martinez’s data suggests that Dogecoin supporters on the Binance exchange exhibit a highly bullish attitude towards the meme coin.

Majority Of Binance Traders Betting On Dogecoin Price Increase

As a dedicated Dogecoin investor, I’ve noticed that despite the recent dip in Dogecoin’s price from close to $0.4 since January 7, the overall sentiment among traders remains optimistic. This bullish outlook is underscored by crypto analyst Ali Martinez, as evidenced by the trading positions on Binance. At the time he analyzed, the long/short ratio indicated that a staggering 81.05% of all Dogecoin traders with open positions on Binance were placing bets on a price increase.

The fact that most Binance Dogecoin traders are heavily invested in long positions, as indicated by a ratio from Coinglass data, strongly indicates a bullish sentiment. Perpetual contracts, which don’t have a set expiration or settlement date, represent traders’ beliefs about the coin over an extended period. This significant lean towards long positions implies that many Dogecoin traders are optimistic about the meme coin’s potential for prolonged growth, especially as they anticipate another significant bull market in 2025.

It’s worth noting that data from the blockchain indicates that large Dogecoin investors, or ‘whales’, are taking advantage of the price drop to buy more DOGE coins. Over a span of 48 hours, whale wallets holding between 10 million and 100 million DOGE tokens collectively amassed approximately 470 million additional tokens.

DOGE Needs To Hold Above $0.3

Currently, Dogecoin is being exchanged for approximately $0.33 and has dropped by 3.35% within the last 24 hours. This drop is part of a longer-term pattern of subpar price action over the past month, during which Dogecoin has frequently failed to exceed the $0.40 mark. A notable instance occurred when this price point functioned as a strong barrier during Dogecoin’s short-lived price spike in early January 2025.

As a researcher studying the Dogecoin market, my current attention is no longer on pushing past the $0.40 resistance but rather on safeguarding the $0.30 support zone. This area has taken on greater significance in preserving the long-term bullish outlook for this meme coin. For the bullish sentiment to continue, it’s essential that Dogecoin maintains its position above this support level. A breach could indicate the beginning of a more significant correction, a scenario I hope we can avoid.

If Dogecoin manages to sustain itself above the $0.3 threshold, it keeps the upward trend alive, and there’s a good chance it could bounce back anytime. But if it struggles to keep its support at $0.30, we might see more adjustments moving towards $0.25. This situation would not only make its technical progress seem shaky but also reduce the significant gains it could potentially reap once the broader crypto market recovers.

Read More

2025-01-13 23:10