Analyst Says Dogecoin Is Sucking Liquidity From Meme Coin Market
The post Analyst Says Dogecoin Is Sucking Liquidity From Meme Coin Market appeared on BitcoinEthereumNews.com.
An analyst suggests Dogecoin (DOGE) is sucking liquidity from the entire meme coin ecosystem right now. Dogecoin’s open interest and trading activity show increasing optimism in the meme coin’s next rally. Dogecoin (DOGE) has made news again, as the popular meme coin appears to be dominating the meme ecosystem. In a tweet, renowned analyst Bluntz says DOGE seems to be sucking liquidity from the whole meme coin market. He stated: “Looks to me like Dogecoin (DOGE) is sucking liquidity out of the entire meme eco right now.” Nothing seems as positive to me as DOGE does consistently on all the timeframes. According to Bluntz’s analysis, DOGE typically surges in value during altseason, leaving other altcoins rather unchanged. Rising Open Interest Reflects Growing Optimism Among Dogecoin Traders Increasing data points also help to justify this positive sentiment. As we previously reported, DOGE’s open interest (OI) had already exceeded $800 million earlier, and today, CoinGlass data shows it has climbed even more to $1.06 billion. This rise in OI shows traders a growing degree of hope and activity. OI basically counts the active contracts in the futures market, and therefore, this increase implies that more people are depending on DOGE’s price movement. Emphasizing even more the rising enthusiasm, Binance’s DOGE/USDT Long/Short Ratio right now is 1.1533. With more long positions than short positions on DOGE and more traders hoping the price will rise than fall, this ratio shows. Furthermore, as CNF just reported yesterday, among the top five daily gainers across the crypto market, Dogecoin and Floki Inu both showed up. This outstanding performance emphasizes the growing hope traders have in a possible comeback for both meme coins. Rising open interest and price increases for these tokens point to a general expectation for more near future upward momentum. Meanwhile, DOGE is swapped…
Filed under: News - @ October 20, 2024 11:11 am