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Dogecoin Traders Are Long 57% on Binance; Here’s What This Signifies for Price

Sun, 07/03/2022 - 19:30
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Tomiwabold Olajide
Number of ''long'' traders and market trend are inversely correlated
Dogecoin Traders Are Long 57% on Binance; Here’s What This Signifies for Price
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According to Coinglass data, roughly 57% of Dogecoin traders on Binance futures are net long. The long-short indicator reflects the sentiment of most retail traders. "Going long'' refers to the buying side of a particular asset.

Coinglass Data
Dogecoin LongShortRatio, Courtesy: Coinglass

Market volatility is likely to be extreme when the number of ''long'' traders approaches the two extremes (too high or too low). The number of ''long'' traders and the market trend are inversely correlated. In other words, the previous market trend is likely to continue if the number of ''long'' traders increases during a downward market trend or decreases during an upward market trend.

It is conceivable that the market trend will change if there is a big increase in ''long'' traders while the asset price remains high. However, the market trend is likely to persist if the long-short ratio is close to 1:1.

Overall, the Dogecoin long/short percentage in the last 24 hours remains at 49.53%/50.47% with a ratio at 0.94. This might suggest slight equality between bears and bulls, indicating consolidation, although the near-term picture remains slightly bearish. Given that the total value of long orders to short orders is always 1:1, but when the long-short ratio is higher than 1, there are more long traders than short traders and vice versa.

DOGE price action

Dogecoin (DOGE) is now down 2.35% over the last 24 hours, trading at $0.065. A little edge for sellers is indicated by the fact that the RSI is barely below the midway point and the MA 50 has flattened out.

If the price drops below $0.06, it might be a sign that the bears are trying to take control once again. The decline might be resumed by sellers to drive Dogecoin below the crucial support level of $0.05. At $0.04, there is another support.

On the other hand, if the price increases from where it is now, buyers may once again try to break through the $0.08 (MA 50) barrier. Dogecoin might then try to reach the $0.10 mark.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.