"$100 million flowed in 5 days"...Dogecoin on the verge of explosion due to massive short bets

▲ Dogecoin (DOGE)

Dogecoin (DOGE) open interest has surged in a short period, creating extreme tension in the market. While the price movement is limited, a large influx of leveraged funds is increasing the possibility of a directional explosion.

The Crypto Basic reported on April 28 (local time) that Dogecoin open interest on Binance increased by approximately $100 million over the past 5 days. This figure expanded from 2.31 billion DOGE to a peak of 3.23 billion DOGE, an increase of about 39.8%. However, during the same period, the price increase was only about 5%, showing a clear discrepancy between supply/demand and price.

The market interprets this trend as a signal for large-scale bearish bets. Analysis suggests that if open interest increases without a corresponding price rise, investors are likely building short positions, betting on a decline. Particularly, the concentrated capital in a short period creates conditions for the price to sharply move in one direction in the future.

Technical indicators also point to a slowdown in buying momentum. Both the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) suggest weakening upward momentum, increasing the likelihood of a downward reversal. Binance futures data shows signs of funding rates turning negative, anticipating increased downward pressure. If the $0.11 resistance level is not broken, there is a possibility of a decline to the $0.09 range.

The increased volatility of Dogecoin is also impacting the broader memecoin market. Investors in major altcoins such as Shiba Inu (SHIB) are closely watching for large-scale liquidations that may occur during the unwinding of open interest. While whale movements are being detected, individual investors are continuing with risk-management-focused responses.

Macroeconomic factors such as geopolitical tensions in the Middle East and rising international oil prices are also acting as burdens. Added to this, delays in processing US cryptocurrency market structure bills and policy uncertainties have dampened investor sentiment. Dogecoin has entered a critical phase, facing a directional decision amidst overall market pressure.

*Disclaimer: This article is for investment reference purposes, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*