Over 51% of traders are currently shorting DOGE as market volatility triggers a major Dogecoin price crash to new lows. Despite experiencing a minor recovery after its decline, Dogecoin continues to struggle, exhibiting bearish momentum.
Traders Short DOGE Amidst Dogecoin Price Crash
The Dogecoin price has crashed again, losing more than 25% of its value in the last 24 hours. This massive price decline has caused panic across the crypto community, with investors exiting the market and selling off their holdings.
According to X (formerly Twitter) crypto analyst KrissPax, the Dogecoin sell-off has persisted for four consecutive days as investors aim to profit from earlier gains and avoid losses. Each price decline in the popular meme coin has pushed it to lower lows, towards the $0.24 range.
The analyst also disclosed that the meme coin has failed to hold onto any distinct support level, consistently shedding a percentage of its value daily. Due to this bearish trend, the analyst questions if the meme coin has finally achieved its market bottom and could initiate a potential price reversal upwards.
Opposing this optimistic projection, Coinglass data reveals that 51.29% of all traders, as of writing, are betting on further declines in the Dogecoin price. This signals a lack of confidence in Dogecoin’s short-term recovery and future price outlook.
While some traders had hoped for stabilization or even a rebound to new highs, DOGE’s market momentum remains weak. Coinglass has revealed that 48% of traders are still optimistic about Dogecoin’s potential to recover and execute another price rally to new levels.
Currently, selling pressures in the DOGE price have raised concerns among crypto members. Many advise investors to take the recent price crash as a buying opportunity and HODL for the long term. They warn investors to refrain from selling their tokens to prevent whales from accumulating more.
While the Dogecoin price declines and retail traders sell off their tokens, whales are taking the opposite approach, accumulating more DOGE tokens despite the downturn. These large-scale investors are taking advantage of low prices to increase their holdings, hoping to make significant gains once prices stabilize and recover again.
Analyst Says DOGE Needs A $0.25 Breakout
While commenting on Dogecoin’s recent market crash and bearish momentum, a crypto analyst identified as ‘AlgoXTrading’ on X has outlined two key levels that could trigger a positive shift in the meme coin’s trajectory. The analyst pointed to the $0.19 support level as a critical area, suggesting that a price reversal could be imminent if the altcoin holds above it.
Additionally, he predicted a possible breakout to $0.25, emphasizing that surpassing this level is crucial for DOGE to regain its bullish momentum. Expressing confidence in Dogecoin’s future potential, the analyst mentions bullish factors like Elon Musk’s influence catalyzing a possible price rally. He also revealed that historically, the DOGE price has “always rebounded harder than expected.”
Featured image from Adobe Stock, chart from Tradingview.com
