It has recently been widely expected that Dogecoin (DOGE) will reach $1. Unfortunately, the optimism surrounding this forecast was hit hard.
June 17 is popular memcoin Dogecoin (DOGE) has followed the general decline in the market and has lost almost 10% of its value in the last 24 hours. Traders with open contracts were also affected.
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Big losses force traders to change their strategy
According to Coinglass, liquidations of positions on DOGE from June 17 to 18 amounted to $60.27 million. On Monday, it reached $44.21 million, and at the time of writing – $16.06 million.
Liquidations occur when an exchange forcibly closes a trader’s position to prevent further losses. It is noteworthy that most of such positions were long. The total liquidation of Dogecoin long positions is $59.84 million; short – $ 633910. After the capitulation, traders continue to ignore bullish positions in favor of bearish ones.
The long/short ratio confirms this sentiment. If the value of this indicator exceeds 1, it means that traders are optimistic about cryptocurrencies. On the contrary, an indicator below 1 indicates pessimistic expectations of traders. DOGE’s long/short ratio for the past hour at press time was 0.82.
Dogecoin Forecast: Revaluation Begins
Also consider the prospects of the coin using such. anchain metric as trading volume and realized capitalization (Implemented cap).
Volume refers to the total value of coins for that period. An increase in volume along with an increase in price can lead to an increase in the value of the coin. When the volume decreases and the price increases, it means that most participants are selling. In this case, the upward trend weakens, and the price gradually decreases.
For DOGE, the volume indicator rose above $1 billion, while the value continued to fall. If this trend continues, the decline in mecain could worsen and reach $0.10 in the most bearish scenario.
The Realized Cap metric calculates the aggregate value of the capital invested in a cryptocurrency based not on the market rate, but on the value that was recorded at the time of the last movement of coins in the blockchain. This helps clear the overall picture from such a factor as lost tokens, which have not been in motion for a long time. A sharp increase in this indicator implies that investors are hoarding cheap coins. After that, it portends an increase in price.
However, in the case of Dogecoin, the figure dropped to 59.49 million. This means that the coins are subject to re-valuation as transactions increase. As a consequence, the price of DOGE can expect a prolonged consolidation between $0.10 and $0.12.
To reverse this forecast, DOGE should be one of the first to move when the market recovers. This will be possible with the support of other memcoins. In March, they already surpassed other segments of the crypto market. If this happens again, Dogecoin could rise to $0.15.
Agreed I’m doing the Trust project, this analytical article is purely informative and cannot be considered as financial or investment advice. BeInCrypto’s policy is to provide quality and truthful information, however market conditions remain unpredictable. BeInCrypto encourages readers to independently verify the information and consult with a professional before making any financial decisions based on this content