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ThecoinrepublicNewsDogecoin Price Plunges As Whale Dumps 400M...
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Dogecoin Price Plunges As Whale Dumps 400M Coins On Binance

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Dogecoin’s market performance has been notably bearish, with the price falling below $0.1 for the first time in four months. Nevertheless, at the time of writing, the price of Dogecoin stood at $0.1033, which was a 5.5% fall within the last 24 hours after a rebound from the $0.09379 support.

The price had been falling since the end of May but had a short period of consolidation between June 20 and July 2. However, the market crash and pressure to sell caused the price to fall even more.

Since the beginning of February, the meme coin’s price has been at its lowest, but it later surged in the mid-March. The market trend is still bearish, although the previous trends suggested some upside movements.

Whale Activity and Market Sentiment

The recent price drop was compounded by a crypto whale selling 400 million Dogecoin worth $41.08m on Binance. This big transaction has heightened selling pressure and a bearish mood in the market.

The whale still holds 379.08 million Dogecoin, which is worth about $36.59 million, and this shows that this could be a strategic move instead of completely dumping the asset.

This significant dump has heightened traders’ concern, indicating that they do not have much faith in Dogecoin’s ability to rebound in the near future. Fear, uncertainty, and doubt (FUD) have been seen to be rife on social media platforms, contributing to the negative market sentiment.

DOGE/USD Technical Analysis

The technical analysis of Dogecoin also suggests negative sentiments in the market. The cryptocurrency has revisited and breached the first support level of $0.10331 and is on course to the second support level at $0.08214. 

Therefore, the recovery towards the pivot at $0.13455 is not expected in the short term due to the current market conditions.

DOGE/USD 1-day price chart (source: TradingView)

However, a bullish recovery may be imminent with the bullish flag forming on the 1-day chart. Concurrently, the RSI is oversold with a rating of 22, which is a precursor for a bullish rebound.

DOGE Derivatives Volume and Open Interest

The overall crypto market has also been hit hard by liquidations, and Dogecoin was not spared either. In the past 24 hours, $675 million worth of crypto assets were liquidated, the highest amount since the FTX crash. At the same time, the trading volume of Dogecoin derivatives has risen by 57.88% to $3.09 billion.

It suggests there might be more trading activities and possibly early signs of speculation, especially during bullish markets or prior to major events.

This significant rise in trading volume indicates heightened activity and potentially increased speculative interest in Dogecoin, often seen during bullish market phases or in anticipation of market-moving events. 

DOGE Derivatives Chart (source: Coinglass)

On the other hand, the open interest has reduced by 12.13% to $506.05 million. A fall in open interest accompanied by a rise in volume indicates that short-term trades are the cause of the volume increase, as traders unwind their positions instead of opening new ones. It can sometimes signal a near-term reversal if it follows a price increase.

The 24-hour long/short ratio for Dogecoin is 0.9585, meaning there is a slightly bearish market sentiment rather than a bullish one. This balance indicates some level of indecisiveness or conservative approach among the traders.

Disclaimer

The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss. The forecasted data (also called “price prediction”) on this page are subject to change without notice and are not guaranteed to be accurate.

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Adarsh Singh
Adarsh Singh
Adarsh ​​Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
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