Dogecoin Longs on the Rise
The value of Dogecoin has increased by about 10% in the past day, leading to an increase in long positions on the futures market.
Binance Funding Rate
Traders are showing confidence in Dogecoin’s price by opening long positions on the futures market. The Binance funding rate, which measures the fee that Dogecoin futures contract holders on Binance are exchanging, is a key indicator of this trend.
A positive funding rate indicates that long investors are paying a premium to the short ones to maintain their positions, reflecting a bullish sentiment in the market. Conversely, a negative value indicates a bearish trend dominated by DOGE short traders.
Potential Risks
The surge in long positions may lead to a “long squeeze” if there is a pullback in Dogecoin’s price. This event could result in a significant drawdown for the asset, as a cascade of liquidations from long investors could worsen a market swing.
DOGE Price Surge
After the recent rally, Dogecoin has reached the $0.087 level for the first time since April, signaling a significant increase in its value.
Hot Take: Caution Advised Despite DOGE Surge
While Dogecoin’s recent surge in value is impressive, the rise in long positions and positive funding rate on the futures market could also pose risks if there is a pullback. It’s essential to keep an eye on the market and be cautious about potential long squeezes that may affect Dogecoin’s price.
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