Three out of four traders are betting on Dogecoin: Are we expecting the next high?

Three out of four traders are betting on Dogecoin: Are we expecting the next high?

Current market analysis shows that Dogecoin (DOGE) is experiencing notable demand on Binance Futures. An impressive 75.01% of traders position themselves with long positions, while only 24.99% go short. This ratio of over 3.0 indicates consistently optimistic market access. Loud The Market Periodical Open interest in DOGE futures has risen to a whopping $3.14 billion, an increase of 11.07%.

Social media and online communities have played a crucial role in driving buying interest, further strengthening the popular cryptocurrency with its roots in the meme space. However, market analysts observe that the increasing long positions may potentially lead to an increased risk of strong price movements. It remains unclear whether these investments will lead to a sustained increase in prices or just short-term corrections.

Market analysis and technical indicators

DOGE technical analysis shows some promising trends. The Relative Strength Index (RSI) shows similarity to previous bull cycles and has seen a rise from previous lows. The RSI is moving higher on the weekly chart, suggesting similar patterns as before the notable advance in 2020. Analysts are predicting possible price targets of $36 and $69.42 should momentum develop in a positive direction.

A 25.30% increase in options open interest to $1.06 million presents another sign of growing confidence in DOGE. Despite this, options volume fell 47.12% to $301,000 and total derivatives activity experienced a 19.33% decline to 8.29%. This could indicate that broader investor participation is less pronounced.

Outlook for the future

Overall, the current market situation on Binance Futures shows a bullish picture for Dogecoin in the short term. Nevertheless, the return to increasing leveraged positions also points to a potential risk: large long positions could lead to liquidations and subsequent price losses in the event of a market decline. How traders and analysts will follow this volatile cryptocurrency remains to be seen.

The Dogecoin community is optimistic, but it is important to remain vigilant. A sharp rise in DOGE prices could be on the way, but uncertainties in the market remain. Coindoo highlights that the majority of traders believe in a positive trend while the volatile nature of DOGE remains an issue.