Dogecoin has captured market attention following the U.S. presidential election results. The election saw Donald Trump regain the presidency, with Elon Musk openly endorsing him. Musk’s public support and recent appearances at Trump rallies have fueled speculation about their potential collaboration. Shortly after Trump’s victory, Dogecoin’s value experienced a notable 25% surge. This rally underscores the cryptocurrency’s sensitivity to Musk’s endorsements and political developments.
However, Dogecoin’s price displayed mixed performance in subsequent trading sessions. Despite an 11.84% increase over the past seven days, DOGE saw a 5.28% decline in the last 24 hours. On-chain activity reveals heightened investor participation, with significant inflows recorded during late October and early November.
On-Chain Metrics
Recent on-chain metrics highlight an increase in Dogecoin’s netflow, signaling intensified investor activity. Over the past seven days, the netflow surged by 84.49%, reflecting a short-term bullish trend. This influx aligns with the broader market’s positive sentiment following the election results. Over the past 30 days, the metric saw a dramatic 1243.17% rise, suggesting a major shift in investor behavior.
Conversely, a 90-day netflow analysis shows a 33.04% decline. This indicates that, despite recent gains, net outflows characterized the broader quarterly trend. The data highlights a complex market narrative, with short-term optimism contrasting with longer-term caution.
Derivatives Data Signals Mixed Sentiment
The Dogecoin derivatives market offers further insight into market behavior. Trading volume dropped 57.67% to $9.92 billion, signaling reduced activity. Meanwhile, open interest also fell by 6.86% to $1.61 billion, indicating fewer outstanding contracts.
In the options market, volume plummeted by 88.15% to $139.69 million, suggesting waning interest. Yet, options open interest grew by 4.43% to $1.28 million, showing traders are holding positions. Long/short ratios provide additional context. The overall 24-hour ratio of 0.9298 indicates a higher number of short positions. However, on platforms like Binance and OKX, long positions dominate, with ratios of 1.9481 and 2.5, respectively.
Dogecoin Nears Breakout as Descending Wedge Pattern Tight
Liquidation Data and Price Projections
Liquidation data adds even more market turbulence. $18.16 million in Dogecoin positions were liquidated across the past 24 hours, with $12.70 million long. The 12 hour liquidation metrics showed $7.49M and out of that $5.48M was longs. The pattern was repeated across shorter time frames, with liquidations of $71,180 in one hour, mostly from long positions.
Elsewhere, a market analyst is watching for a rise in Dogecoin’s price. Ali Martinez, the seasoned crypto analyst, pointed out that Dogecoin is in the process of consolidating in a descending triangle on lower time frames.
On the lower time frames, #Dogecoin $DOGE is consolidating within a descending triangle. Breaking above the $0.198 resistance could spark a 10% move up to $0.220! pic.twitter.com/jnQz3GyhLY
— Ali (@ali_charts) November 7, 2024
Martinez said a breakout over the $0.198 resistance level could set off a 10 percent run, taking prices to $0.220. If Dogecoin is able to sustain upward momentum in the near term, this technical setup does imply that Dogecoin may be gearing up for a big move in the near term.
