The post Why Is There a Shake in Dogecoin Price Today? appeared first on Coinpedia Fintech News
As Bitcoin witnessed a drop of 11.25% in its price, the whole crypto market started bleeding. The memecoin OG, Dogecoin took a severe hit and fell 32% in the last three days. Dogecoin price today is down by 20.70% as compared to the last 24 hours. This price gave an amazing opportunity for short traders as well as people willing to fill their bags. Let’s explore what could happen next.
DOGE Metrics
According to DeFiLlama, the total value locked in DOGE has fallen 32.65% in the last 3 days of the crypto market plummet. On December 17 the TVL was at $8.82 million while at the time of writing it was $5.94 million. The first meme coin is also facing almost 50% drop in open interest as well. On December 9, the OI was at $4.34 billion when DOGE was priced at $0.45. This has fallen to $2.26 billion as the price fell below $0.30.
Source : Tradingview
It is currently trading at $0.28 and the latest support is around $0.27 due to the presence of the moving average 100. The price has dropped below MA 20 and 50 and the MA 200 lies around $0.17. The RSI is at 30.15 which shows that Dogecoin has fallen to the overbought zone. This would be the time for whales to accumulate the token.
The Trading Momentum
Whales orders and large trade data from coinglass shows that doge is still in a very risky zone. Even though it has been trying to recover, the amount of shorts are tremendous. The red circles on the image below are the large trades while the red and green lines show the presence of whale orders.
Source : Coinglass
At the current price we can see that most of the short trades have been fulfilled. This means the market can take a sudden upwards movement to liquidate high leverage traders. It is very common for the market to play the traders, hence they must stay alert and place with good risk management.
What to Expect?
The crypto community knows it very well that Dogecoin follows the movement path of Bitcoin. As BTC is trying to hold the price and recover, we can see the similar pattern in Doge. New buying flow can help the crypto to push the price up, however, the chances of a further fall can also not be denied. The drop in BTC sent the ripples across the crypto market. This this also the reason for the drop in dogecoin price today. During such confusing states, it is better to stay away from leverage trading. However, these are the times of opportunities for dollar average costing.
