Dogecoin shakes off bear trap – Is now the perfect time to invest?

  • Dogecoin has gained by 9% in 24 hours, outperforming all other top-ten largest cryptos by market cap.
  • An approaching golden cross on the daily chart and rising open interest hint at more gains.

As a seasoned researcher with over a decade of experience in the volatile world of cryptocurrencies, I’ve learned to keep my eyes wide open and my fingers on the pulse of the market. And let me tell you, Dogecoin’s recent performance has been nothing short of intriguing. With a 9% surge in just 24 hours, outperforming all other top-ten cryptos by market cap, it’s hard not to sit up and take notice.


In the past 24 hours, Dogecoin (DOGE) has surpassed all the top ten cryptocurrencies by market capitalization due to a 9% increase in its value. Currently, DOGE is being traded at approximately $0.169, and trading volumes have risen by 38%, according to CoinMarketCap.

In the past 30 days, Dogecoin’s value has increased by 51%, making it one of the top-performing cryptocurrencies in the previous month.

Nevertheless, the upward trajectory of Dogecoin hasn’t been completely linear. It peaked at a 6-month maximum of $0.174 on October 29th, but then it dropped approximately 22% over a five-day period before regaining momentum.

It seemed like a bear trap when the drop occurred, but DOGE quickly turned things around from this downward trend. Moreover, technical signs suggest that the upward trend is regaining strength once more.

To put it simply, we’re seeing a situation where the short-term trend (50-day Simple Moving Average) is increasing and moving towards the long-term trend (200-day SMA) on the one-day chart. If these lines cross, it suggests a strengthening optimism and could signal that Dogecoin (DOGE) might continue to increase in value.

Dogecoin shakes off bear trap – Is now the perfect time to invest?

64 on the Relative Strength Index indicates an increasing bullish power, with rising buying pressure suggesting a stronger market trend.

Positive indicators seem to indicate that Dogecoin has successfully escaped the bear’s grip, suggesting that its upward momentum may persist further.

Dogecoin long positions on the rise 

The growing enthusiasm among derivative traders for Dogecoin is indicated by the swift increase in its open interest. Currently, the open interest has jumped by 17% within a day, reaching approximately $1.24 billion.

Dogecoin shakes off bear trap – Is now the perfect time to invest?

1 Way: The increase in Dogecoin’s price (OI) is being driven by a spike in investors taking long positions on the cryptocurrency. Over the last two days, the ratio of long trades to short trades has grown from 0.93 to 1.02, indicating that long-term traders now outnumber short-term ones. On Binance, approximately 62% of active traders are currently holding long positions on DOGE.

As a crypto investor, I’ve noticed an uptick in open interest and the long/short ratio, which often indicates a bullish outlook. However, this bullishness might lead to unpredictable price fluctuations, so it’s crucial to stay vigilant and adapt my strategy accordingly.

Dogecoin’s liquidation heatmap shows… 

Examining the Dogecoin liquidation map over a week’s timeframe reveals that the majority of active positions, predominantly short ones, were closed out as the meme currency experienced an upward trend.

Additionally, it’s worth noting that there are comparatively fewer cases of liquidations occurring below the price of $0.169. Yet, the presence of a liquidation pool at this same price point implies that it could potentially serve as an attractive force, potentially pulling the prices upwards.

Dogecoin shakes off bear trap – Is now the perfect time to invest?

This heatmap indicates a surge in liquidity related to DOGE, mirroring increased trading activity. As more investors take notice of the token, trading volumes are on the rise.

Are whales betting on Dogecoin? 

Recent data from IntoTheBlock indicates a resurgence in whale activity related to Dogecoin. Notably, there’s been a 37% rise in large transactions involving DOGE that exceed $100,000. These high-value transactions have grown from 7.72 billion to 10.62 billion over the past two days.

Dogecoin shakes off bear trap – Is now the perfect time to invest?

If the level of whale activity increases, it might be a positive sign for the meme coin, as it suggests that big traders could be accumulating it.

Nevertheless, whales and retail traders have nearly equal control over Dogecoin’s supply. As such, activity from the two cohorts is needed to drive prices higher. 

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2024-11-05 15:04