Investors of the popular meme coin Dogecoin (DOGE) are 57% long on Binance. So what does this altcoin mean for the price?
DOGE investors in ‘net long’ position
According to data from Coinglass, roughly 57% of Dogecoin traders in Binance futures are net longs. The long-short indicator reflects the sentiment of most individual traders. A long position refers to the buy side of a particular asset.
When the number of long traders approaches the two extremes (too high or too low), market volatility is likely to be extreme. Because the number of long traders and the market trend are inversely proportional. In other words, if the number of long traders increases during a downtrend or decreases during an uptrend, the previous market trend is likely to continue.
If there is a large increase in long traders while the asset price remains high, it is conceivable that the market trend will change. However, if the Long-Short ratio is close to 1:1, the market trend is likely to continue.
Overall, the Dogecoin Long-Short percentage over the last 24 hours remains at 49.53%/50.47%, down from 0.94. This points to consolidation, although the short-term picture is somewhat bearish. It is therefore possible to suggest a slight parity between bears and bulls. Given that the total value of long bids to short bids is always 1:1, however, when the Long-Short ratio is higher than 1, there are more lon traders than short traders. Of course, the opposite is also true.
Altcoin price action
cryptocoin.comAs you follow, the crypto market is going through very difficult days. Naturally, the popular meme coin DOGE also got its share. Dogecoin (DOGE) is trading at $0.06719, up 0.76% in the last 24 hours. Crypto analyst Tomiwabold Olajide sees a small advantage for sellers. This is also indicated by the fact that the RSI is slightly below the midpoint and the MA 50 is flattening out. Tomiwabold Olajide points out the following technical levels in his analysis.
If the price dips below $0.06, it could be a sign that the bears are trying to take control once again. Sellers are likely to continue bearish to push Dogecoin below the critical support level of $0.05. Also, there is another support at $0.04. On the other hand, if the price rises from where it is now, buyers are likely to try to break the $0.08 (MA 50) barrier once again. The altcoin price is likely to attempt to reach the $0.10 mark later.
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