Dogecoin price opened trading at $0.15 on May 14, gaining 10% in 48 hours. With bulls deploying additional leverage, how much longer can DOGE sustain the uptrend?
DOGE Bulls Mount $41 Million Leveraged Positions after 10% Rally
After hitting a monthly peak of $0.17 on May 4, Dogecoin price descended into a week-long 20% correction phase that saw it retest $0.13 by May 12.
However, the bulls appear to be back in the drivers seat this week, riding on the wave of positive sentiment and optimism surrounding the crypto market ahead of US CPI and PPI data release.
At the time of writing on May 14, DOGE price has gained 10% reaching a peak of $0.16 during the intraday trading hours on May 13.
While the Dogecoin price is mainly triggered by broader macroeconomic drivers, bull traders in the derivatives markets are now looking to seize the initiative and drive prices further upwards.
Critical market data show that traders holding LONG positions on DOGE have been deploying additional leverage in the last few days. This move could see the DOGE bulls earn amplified profits if spot price rises further.
Coinglass’ Liquidation Map data shows a real-time comparison of cumulative LONG leverage positions against the active SHORT contracts.
As seen above, the DOGE bull traders currently have active leveraged LONG positions worth $41.2 million. In comparison, the bears only have active SHORT contracts worth $12.7 million.
The significant difference in the value of active leveraged LONG positions ($41.2 million) compared to active SHORT contracts ($12.7 million) indicates a strong bullish bias among traders.
Largely, it suggests that traders are more optimistic about the future price movement of DOGE, leading them to deploy more leverage on their long positions, amplifying their profits in the event of appreciation.
DOGE Price Forecast: Rocky Road to $0.20
Dogecoin price is currently trading above the $0.15 level at the time of writing after 10% gains in the 48 hours. However, the disparity between the $29 million disparity between LONG positions and SHORT contracts implies the potential for a further upswing toward the $0.20 level.
IntoTheBlock’s GIOM data also affirms this bullish DOGE price forecast. It shows that breaking above the critical $0.15 territory has now pit DOGE bears up against an $800 million support cluster.
As seen below, 98,000 existing holders had acquired 5.32 billion DOGE at an average price of $0.14. This implies that the bears have to stage a $800 million sell-off to force a downswing below $0.14.
But with over $41 million active LONG positions, DOGE bulls will likely make spirited efforts to prevent that reversal in the near-term.
With fewer active SHORT positions, if the upcoming US CPI and PPI data reports deliver better-than-expected outcomes, the Dogecoin price could surge toward $0.20, facing far lesser resistance.