What’s Happening in Dogecoin (DOGE)? An Event Not Seen in a Year

Dogecoin Market Sentiment Shifts Bearish with Surge in Short Positions

Dogecoin (DOGE), the prominent memecoin in the cryptocurrency market, is experiencing a rise in short positions.

According to Coinalyze data, DOGE's funding rates have dipped below zero since Tuesday, reaching -0.0027% as of Thursday. These levels were last observed in October 2023. Funding rates represent periodic payments made between traders based on the price differential between futures and spot markets.

While the current funding rates are relatively modest, their consistent decline alongside falling prices suggests a bearish market sentiment. DOGE lost 12% of its value last week, reversing gains made since March.

Furthermore, DOGE's open positions have declined from approximately $800 million on Monday to $611 million as of Thursday, indicating a decrease in demand for the token.

Similar sentiment is evident across the memecoin sector, with tokens recording losses of up to 40% over the past seven days. Investors are shifting their focus towards more stable assets such as Bitcoin and stablecoins.

Analyst Neil Roarty of Stocklytics observed, "When Bitcoin price drops, memecoins amplify the losses. Plans for a 'memecoin summer' may need to be reconsidered."

Disclaimer: This information does not constitute financial advice.

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