TLDR
- Dogecoin (DOGE) dropped 4.97% recently but still shows a 20.57% monthly gain
- DOGE hit a resistance level that has caused pullbacks in five previous instances
- Traders bought $16.91 million worth of DOGE and moved coins to private wallets
- A $1.4 million liquidation cluster sits above current price levels
- Open Interest Weighted Funding Rate rose to 0.0047%, showing long trader dominance
Dogecoin experienced a 4.97% price decline in recent trading sessions. The drop pushed the cryptocurrency toward lower price levels after testing a key resistance area.
Despite the recent pullback, DOGE maintains strong monthly performance with gains of 20.57%. This creates a contrast between short-term weakness and longer-term strength.
The current price action occurred at a historically important resistance level. Data shows this level has triggered pullbacks on five previous occasions.
Only once in the past has DOGE managed to hold above this resistance area. The other four instances resulted in price retracements of varying degrees.
Strong Resistance Level Creates Technical Challenge
Market analysis reveals the resistance level has acted as a consistent barrier for price advancement. Each time DOGE reached this area, selling pressure increased.
The pattern suggests traders view this level as an important profit-taking zone. Historical data shows most attempts to break through resulted in temporary setbacks.
However, current market conditions may differ from previous instances. Several factors point to increased demand despite the recent price decline.
Exchange netflow data indicates traders purchased $16.91 million worth of DOGE recently. This buying occurred as the cryptocurrency moved into what analysts call a demand zone.
The netflow data also shows traders moved their DOGE holdings from exchanges to private wallets. This suggests long-term holding intentions rather than short-term trading.
Market Metrics Support Potential Recovery
Open Interest Weighted Funding Rate data provides insight into futures market sentiment. The metric rose to 0.0047%, indicating positive funding rates.
Positive funding rates typically mean long positions outnumber short positions in the futures market. This suggests traders expect price increases despite recent declines.
The combination of spot buying and futures positioning creates a mixed technical picture. Short-term price action shows weakness while underlying demand appears strong.
Liquidation heatmap data reveals a cluster of potential liquidations above current price levels. The zone contains approximately $1.4 million in liquidation potential.
Historical patterns show prices often move toward areas of high liquidation density. These zones can act as magnets for short-term price movements.
The liquidation cluster sits above DOGE’s current trading range. If historical patterns repeat, this could provide upward pressure on the cryptocurrency’s price.
Current data shows both spot and futures traders maintain interest in DOGE despite recent price weakness, with $16.91 million in recent buying activity and rising funding rates pointing to continued long-term accumulation.
The post Dogecoin (DOGE) Price: Recent 4.97% Drop Contrasts With 20.57% Monthly Gains appeared first on Blockonomi.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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