Dogecoin Funding Rate Attains Highly Positive Values After Rally
As explained by the on-chain analytics firm , 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.
The value of the metric appears to have been positive in recent days | Source: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.
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.
DOGE Price
Following the latest rally, Dogecoin has surged towards the $0.087 level for the first time since April.DOGE has observed some rapid growth in the past day | Source: