⭐⭐The Dogecoin Market Is Booming Thanks To Short Selling⭐⭐
A surge of optimism has been recently riding Dogecoin's (DOGE) popularity, the meme-inspired cryptocurrency that has a dedicated fanbase. Investors were ecstatic when its price increased by about 8% in the last week. The future of this frisky pup's price trajectory is questionable, however, due to a recent action by a significant DOGE holder.
Doge has been gleefully following the optimistic trend in the larger cryptocurrency market as of late. An enormous price rise occurred last week, and the good times continued with a 3% increase on the previous day.
The price of DOGE jumped to a cheery $0.152 as a result, which is sure to put a smile on the face of all those investors who have been waiting for a steady increase.
The celebration extended beyond the spot market as well. There was a corresponding uptick in activity in the derivatives market, with open interest in Dogecoin Futures increasing by a robust 9%.
This points to a resurgence of interest among traders, especially those who are interested in using futures contracts to profit from possible price changes.
This has the ability to set off a short squeeze, in which short sellers are compelled to repurchase DOGE in order to cover their holdings, thereby driving the price of the cryptocurrency upward. Whether or how this encouraging trend can overcome the possible selling pressure caused by a recent whale movement is an open question.
Beware of Whales: Rumors Abound Over Huge Transfer
A whale transaction sent waves of worry across the Dogecoin community at a time when DOGE was looking well. A staggering 200,000,000 DOGE, or around $30.86,000,000, was sent to the trading site Robinhood, according to data from Whale Alert.
Many are wondering whether the whale is planning to sell off a large chunk of their assets, given this massive shift. The present rising momentum of DOGE might be halted if there is a big sell-off, which would put a lot of selling pressure on the market.
