According to Coinglass statistics, around 57% of Dogecoin futures traders on Binance are net-long. This indicator represents the mood of the majority of retail traders. “going long” refers to the act of purchasing an asset.
When the number of “long” traders reaches its two extremes, market volatility is likely to be significant (too high or too low). The correlation between the quantity of “long” traders and the market trend is negative. In other words, if the number of “long” traders grows during a downward market trend or drops during an upward market trend, the prior market trend is likely to continue.
If there is a significant rise of “long” traders while the asset price stays high, it is possible that the market trend may reverse. However, if the long-short ratio is close to one to one, the market trend is likely to remain.
In the previous 24 hours, the Dogecoin long/short proportion remained at 49.53 percent / 50.47 percent, with a ratio of 0.94. This may indicate consolidation between bears and bulls, although the near-term outlook is still somewhat negative. There are more long traders than short traders when the long-short ratio is greater than 1.
DOGE market activity
Dogecoin (DOGE) is now trading 2.35 percent lower than it was 24 hours ago, at $0.065. The fact that the RSI is just below the 50-point moving average and the MA 50 has levelled off indicates a little advantage for sellers.
If the price falls below $0.06, it may indicate that the bears are attempting to regain control. Sellers might continue the drop and push Dogecoin below the important support level of $0.05. There is another support at $0.04.
Alternatively, if the price climbs from its current level, purchasers may attempt to break past the $0.08 (MA 50) barrier once again. Dogecoin may then attempt to hit the $0.10 threshold.