Dogecoin has seen a rise of about 10% during the past day, but longs are piling up on the futures market, which may be something to keep an eye on.

Dogecoin Funding Rate Attains Highly Positive Values After Rally

Dogecoin 펀딩 비율은 랠리 후 매우 긍정적인 값을 얻습니다.

As explained by the on-chain analytics firm Santiment, DOGE traders are betting on the price rise to continue as long positions are being opened on the futures market.

The indicator of interest here is the “Binance funding rate,” which keeps track of the periodic fee that Dogecoin futures contract holders on Binance are exchanging with each other right now.

여기서 관심 지표는 바이낸스의 Dogecoin 선물 계약 보유자가 현재 서로 교환하고 있는 정기 수수료를 추적하는 "바이낸스 펀딩 요율"입니다.

When the value of this metric is positive, it means the long investors are paying a premium to the short ones in order to hold onto their current positions. Such a trend implies the majority of the market holds a bullish sentiment.

On the other hand, negative values imply a bearish mentality is the dominant force in the sector as the DOGE short traders are outweighing the longs at the moment.

Now, here is a chart that shows the trend in the Dogecoin Binance funding rate over the past month:

이제 지난 한 달 동안 Dogecoin Binance 자금 조달 비율의 추세를 보여주는 차트는 다음과 같습니다.

The value of the metric appears to have been positive in recent days | Source: Santiment on X

As displayed in the above graph, the Dogecoin funding rate on Binance has turned highly positive recently as the latest rise in the meme coin’s price has taken place.

This implies that speculators have jumped onto the opportunity and are betting on the price rise to continue. Since the longs have started piling up in this latest futures mania, the asset has only continued to trend up, suggesting that the bets of these traders have paid off so far.

이는 투기꾼들이 기회에 뛰어들어 가격 상승이 계속될 것이라는 데 베팅하고 있음을 의미합니다. 최근 선물 열풍에 매수세가 쌓이기 시작한 이래로 자산은 계속해서 상승 추세를 보이고 있으며, 이는 이러한 거래자들의 베팅이 지금까지 성과를 거두었음을 시사합니다.

However, if history is anything to go by, the market being heavily long dominated has generally not ended well for DOGE. From the chart, it’s visible that similar spikes in the Binance funding rate coincided with local tops in the cryptocurrency during the last few weeks.

The reason why such a pattern may exist is that as the futures market accumulates long positions, the chances of a long squeeze taking place become significant.

이러한 패턴이 존재할 수 있는 이유는 선물시장에 매수 포지션이 축적되면서 매수 포지션이 발생할 가능성이 커지기 때문입니다.

A “squeeze” refers to an event where a sudden swing in the price unleashes a cascade of liquidations on the sector. This cascade of liquidations only makes the swing sharper, thus extending the rally/crash (depending on which side of the market is taking the brunt).

When longs are much more in number, such a waterfall of liquidations is naturally easier on their side as compared to the shorts. Thus, while Dogecoin is riding on some sharp momentum right now, any pullback might result in a long squeeze, which could lead to the asset registering a notable drawdown.

매수자의 수가 훨씬 더 많으면 매도자에 비해 그러한 청산 폭포가 당연히 더 쉽습니다. 따라서 Dogecoin이 현재 급격한 모멘텀을 타고 있는 동안 하락세는 장기간의 압박으로 이어질 수 있으며 이로 인해 자산이 눈에 띄는 하락세를 기록할 수 있습니다.

DOGE Price

Following the latest rally, Dogecoin has surged towards the $0.087 level for the first time since April.

최근 랠리에 이어 Dogecoin은 4월 이후 처음으로 $0.087 수준으로 급등했습니다.

DOGE has observed some rapid growth in the past day | Source: DOGEUSD on TradingView

DOGE는 지난 하루 동안 급격한 성장을 관찰했습니다 | 출처: TradingView의 DOGEUSD