Is Dogecoin’s $1 Dream Over?
For some time, the crypto world buzzed with expectations of Dogecoin (DOGE) hitting $1. Sadly, recent on-chain data tells a different story about the meme coin’s outlook. On June 17, DOGE mirrored the market’s downturn, shedding 9.82% in value over 24 hours, affecting traders with open contracts.
Heavy Losses Force Traders to Change Stance
- DOGE liquidations from June 17-18 reached $60.27 million, with a current wipe-out amount of $16.06 million.
- Liquidations happen when exchanges close positions to prevent further losses due to margin issues or market volatility.
- The majority of impacted positions were longs, with $59.84 million in total long liquidations compared to $633,910 for shorts.
Long/Short Ratio Reflects Bearish Sentiment
- Long/Short Ratio currently sits at 0.82, indicating traders’ preference for bearish positions.
- A ratio below 1 suggests pessimistic expectations in the market.
DOGE Price Prediction: Repricing Begins
Turning to price potential, Dogecoin’s volume and Realized Cap are key insights to consider. Rising volume with a price drop suggests bearish sentiment, with potential for further decline.
Realized Cap Points to Consolidation
- Realized Cap, reflecting investor accumulation of cheap coins, supports a potential price increase down the line.
- One-day Realized Cap decrease hints at ongoing revaluation of coins, possibly leading to a $0.10-$0.12 consolidation for DOGE.
Market Movement Holds the Key
- If DOGE can lead the market rebound, a move to $0.15 could be plausible, especially with support from other memecoins.
- Previous market rallies have seen meme coins outperform other categories, offering hope for DOGE’s resurgence.
Hot Take: The Future of DOGE Hangs in the Balance
The $1 Dogecoin dream may have taken a hit, but the meme coin’s fate still hangs in the balance. With bearish sentiment prevailing, only time will tell if Dogecoin can reclaim its former glory or if a new narrative will unfold in the unpredictable crypto landscape.
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