Although Dogecoin's price is struggling and has recently dropped, it seems that investors remain very optimistic about this meme coin. This is evidenced by the fact that the majority of cryptocurrency traders are now choosing to bet on the recovery of this meme coin rather than a continued decline. This is mainly observed on Binance, the world's largest exchange, which has witnessed a sharp decrease in short selling accounts in favor of traders buying Dogecoin.
72% of Binance Traders Are Optimistic
According to data from Coinglass, there are currently more buyers entering at Dogecoin prices compared to sellers exiting. The Long/Short ratio on the site helps map where cryptocurrency traders are leaning and how they are betting. Using percentages, it shows how the majority of people are betting in relation to any coin and exchange, and for Binance, the results indicate that more people are buying than selling.
Currently, among all open bets on Dogecoin on the Binance cryptocurrency exchange, up to 72.46% are buy orders at the time of writing. This leaves a smaller proportion of 27.54% of traders shorting. On this account, it indicates that optimism is increasing for the meme coin.
Interestingly, this change in sentiment seems to be primarily focused on the Binance exchange. Looking at the broader Long/Short ratio for Dogecoin, there are still more short orders than long ones. The overall figure from exchanges indicates that 51.86% of all open bets in the market are currently short orders, amounting to over $1.15 billion at the time of writing. In contrast, only 48.19% of open bets support long orders, totaling under $1.1 billion.
This distance, although quite small, shows that sellers are still dominating the current market. This explains the drop in Dogecoin prices despite daily trading volumes increasing to over $700 million.
Can Dogecoin's Price Recover?
Open interest regarding Dogecoin remains relatively low as traders are currently trading more cautiously. This follows a price decline and a fear sentiment that has enveloped the market. However, such times are often when reversals begin, with many not expecting it.
A cryptocurrency analyst also points out that Dogecoin is forming a strong Ascending Wedge pattern. Now, if this pattern completes, it could put this meme coin on a long-term bullish path. The target for this has been set at $1.161, meaning the analyst is expecting Dogecoin's price to soar over 580% from here.
