Dogecoin has been trading in consolidation for the past two weeks, with a price fluctuating between $0.16 and $0.20. The volatility of this popular cryptocurrency has decreased significantly, indicating indecision from both buyers and sellers. However, as the price tests the support at the lower boundary of the consolidation range, past trends suggest that selling activity could increase.
Short sellers dominate the Dogecoin market. This indicates that most futures traders are betting against the price performance of Dogecoin and anticipating a decline.
The ratio of long to short positions has fallen to 0.95 and has remained below 1 for the past four days. Given that short sellers maintain their positions despite the recent drop, this demonstrates that they expect the price to drop further.
Dogecoin is at a crucial point, as its price stagnates in full consolidation. The dominance of short sellers could be causing this strong consolidation. Meanwhile, some large holders may be looking to sell after 200 million DOGE were moved to exchange platforms, while the consumed age metric skyrocketed.
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