Dogecoin Price Falls Amid Cryptomarket Correction and Rising Whale Activity
Summary:
Dogecoin (DOGE) price has fallen amid a broader crypto market correction. Notably underperforming the crypto market, Dogecoin's value plummeted by over 5.5% in the last 24 hours. The decline correlates with a drop in futures open interest for DOGE. Funding rates for Dogecoin and open interest decrease suggest a bearish outlook, with traders expecting a decline. The surge in whale activity for Dogecoin and increased cashing in by long-term holders further legitimizes the ongoing correction. Increased divergence between rising DOGE prices and falling relative strength index signals the weakening of the prevailing uptrend.
Dogecoin (DOGE) has experienced a downturn today, amid a broader crypto market correction. There's been over a 5.5% decrement in DOGE's price within the last 24 hours, with its value hitting a low of $0.1712 on April 3. This dip fares comparatively worse in contrast with the entire crypto market which saw a downward shift of roughly 0.17% during the same timeframe. The tumble in DOGE's price aligns with a downswing in Bitcoin (BTC) that showed a 7.7% fall over the past two days.
A more detailed analysis of Dogecoin's recent decline is required. The total futures open interest (OI) of Dogecoin dropped alongside its price over the past seven days. According to data from Coinglass, DOGE's OI has slipped by 27.6%, moving from $2.21 billion on March 28 to $1.60 billion currently.
DOGE had previously racked up sizeable gains, marking an increase of over 11% between March 23 and March 28. Following this surge, the price embarked on a downward journey from March 29 onwards, and presently sits at 5.5% below its value from a week ago.
Moreover, the funding rate for Dogecoin perpetual futures contracts has declined from 0.107% to 0.021% over the same period. Reduced funding rates and OI usually signal a bearish outlook among traders, anticipating a further plunge in prices.
Speculators moving to sell could apply additional downward pressure, potentially driving the value of the asset further down. This seems to be the scenario playing out in DOGE's current downward trajectory.
Post-correction, DOGE plummeted to as low as $0.1712 and currently stands 5% lower on the weekly timeline. At the same time, a spike in whale activity implies a bearish trend for Dogecoin. Data from IntoTheBlock reveals a substantial increase in large transactions - those involving the transfer of $100,000 or worth of DOGE - exceeding 20% in the past week.
Tellingly, data also unveils a surge in the number of DOGE transactions exceeding $1 million by over 200% in the past 30 days. Furthermore, the resurfacing of dormant whale accounts implies that long-term holders are cashing in on DOGE's rally in March, suggesting a legitimation of the ongoing correction.
Ahead of today’s price drop, a rise in bearish divergence between Dogecoin's price and the relative strength index (RSI) has been the precursor. The divergence between rising prices and a dipping RSI signals a weakening in the current uptrend, prompting investors to lock in profits at local highs.
Published At
4/4/2024 1:40:17 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.