Dogecoin (DOGE) has seen a recent uptrend, with its price reaching $0.16 after a 10% gain in the past 48 hours. This surge in price has been driven by positive sentiment and optimism in the crypto market, particularly ahead of the release of US CPI and PPI data.
Traders holding long positions on DOGE have been increasing their leverage in the derivatives markets, indicating a strong bullish bias among them. Currently, there are active leveraged long positions worth $41.2 million, compared to active short contracts worth $12.7 million. This significant difference suggests that traders are more optimistic about the future price movement of DOGE and are amplifying their profits in anticipation of further appreciation.
While DOGE is currently trading above the $0.15 level, the disparity between the long positions and short contracts implies the potential for a further upswing towards the $0.20 level. IntoTheBlock’s GIOM data supports this bullish outlook, as breaking above the critical $0.15 territory has put DOGE bears up against an $800 million support cluster.
Furthermore, there are 98,000 existing holders who acquired 5.32 billion DOGE at an average price of $0.14. This means that the bears would have to stage an $800 million sell-off to push the price below $0.14. However, with over $41 million in active long positions, the DOGE bulls are expected to put up a strong defense to prevent any reversal in the near term.
In light of the lower number of active short positions, if the upcoming US CPI and PPI data reports deliver better-than-expected outcomes, there is a possibility for DOGE to surge towards $0.20 with less resistance. Overall, the future path of DOGE’s price remains uncertain but bullish sentiment and favorable market factors may drive the price upward.