Despite the Dogecoin price struggling and dropping recently, it seems investors are still very bullish on the meme coin. This is evidenced by the fact that a large majority of crypto traders are choosing to bet on a recovery for the meme coin rather than further decline. This is mostly visible on Binance, the world’s largest exchange, which is seeing a sharp drop in short accounts in favor of traders who are long on Dogecoin.
72% Of Binance Traders Are Bullish
According to data from Coinglass, there are presently more bulls regarding the Dogecoin price compared to bears. The Long/Short Ratio on the website helps to map out where crypto traders are leaning and how they are placing their bets. Using percentages, it shows how the vast majority are betting on any coin and exchange, and for Binance, the results have shown more longs than shorts.
Currently, of all open bets on Dogecoin on the Binance crypto exchange, a whopping 72.46% are long at the time of this writing. This leaves only a smaller percentage of 27.54% of traders who are short. This trend indicates that bullishness is on the rise for the meme coin.
Interestingly, this turn in sentiment seems to be mostly localized to the Binance exchange. Looking at the broader Long/Short Ratio for Dogecoin, there are still more shorts than longs. Market-wide figures indicate that 51.86% of all open bets are currently short, totaling over $1.15 billion at the time of this writing, while only 48.19% of open bets are in favor of longs, amounting to less than $1.1 billion.
This gap, despite being quite small, shows that sellers are still dominating the market. This could explain the decline in the Dogecoin price despite daily trading volume exceeding $700 million.
Can The Dogecoin Price Recover?
The open interest concerning Dogecoin remains low as traders proceed with caution. This cautious sentiment follows the recent price decline and the caution prevalent in the market. However, historical patterns suggest that such periods often precede reversals, of which many do not anticipate.
A crypto analyst has noted that the Dogecoin price is forming a strong Ascending Wedge pattern. If this pattern is completed, it could lead the meme coin towards a significant rally. The target for this increase has been set at $1.161, indicating an expected explosion in the Dogecoin price by more than 580% from the current levels.
