Dogecoin Terjun Bebas, Apa Artinya bagi Trader DOGE?

Leading memecoin Dogecoin (DOGE) has witnessed a significant double-digit price drop over the past week, raising concerns among investors and traders.

The decline intensified on June 17, when DOGE plummeted to a three-month low, triggering the highest long liquidations recorded this year.

Dogecoin Long Liquidations Surge

During the early hours of the week, the price of Dogecoin plunged to a three-month low of $0.12, resulting in a substantial spike in long liquidations, reaching $44.21 million on that day.

According to reports by BeinCrypto, this marked the highest figure since the beginning of the year. In the derivatives market, liquidations occur when a trader's position is forcibly closed due to insufficient funds to maintain it.

Long liquidations happen when the value of an asset drops unexpectedly, forcing traders with long positions to sell their contracts.

Short Liquidations in Comparison

In contrast, the value of short positions liquidated on the same day was less than $400,000. Since this event, DOGE funding rates across crypto exchanges have remained predominantly negative.

As of , the weighted DOGE funding rate stands at -0.003%. Funding rates refer to periodic payments made between traders to ensure the futures contract market price remains close to the spot price of the underlying asset.

When the asset's futures price is higher than the spot price, the funding rate becomes positive, and traders with long positions pay fees to traders with short positions, suggesting higher demand for longs.

Funding Rates and Market Sentiment

On the other hand, an asset's funding rate becomes negative when the perpetual futures price is lower than the spot price.

In this scenario, short traders pay funding fees to those holding long positions, indicating that more traders are anticipating the asset's price to decline than those buying in anticipation of a price increase.

DOGE's price decline also led to it falling below its 20-day and 50-day exponential moving averages (EMAs) on June 7.

When an asset's price drops beneath these two key EMAs, it signals increasing selling pressure and confirms the bearish bias against the asset, prompting many traders to close their long positions.

Additionally, the negative value of DOGE's Elder-Ray Index further confirms the bearish sentiment surrounding the memecoin. The Elder-Ray Index measures the relationship between buyer and seller strength in a market.

A negative value indicates that bearish forces are dominant in the market. Since DOGE's price fell below these key moving averages, the Elder-Ray Index has consistently returned negative values. As of , the DOGE Elder-Ray Index has a value of -0.023.

If DOGE bears maintain control and selling momentum intensifies, the memecoin could decline further and reach $0.11. Traders and investors should closely monitor these indicators to make informed decisions about their Dogecoin positions.