Dogecoin: 76.65% of traders bet on DOGE’s rise – Will it pay off?

Dogecoin’s market faces heightened risk of volatility with dominant long liquidations and technical resistance.

Overwhelming long positions raised liquidation risks, suggesting potential for market correction. Technical levels and the MVRV ratio indicated Dogecoin may struggle to surge in the short term.

The market sentiment surrounding Dogecoin [DOGE] remains bullish, with 76.65% of traders on Binance Futures holding long positions. This suggests that many expect the price to rise in the short term.

A high concentration of long positions may indicate overconfidence in the market.

However, if Dogecoin falls short of traders’ expectations, this could trigger forced liquidations, adding further downward pressure.

As a result, despite the optimistic outlook, the market may experience heightened volatility.

What does the technical chart say? 

At press time, Dogecoin was trading at $0.1809, showing a 7.96% drop in the last 24 hours. The price action suggests that Dogecoin is testing a critical support zone around this level.

If this support holds, Dogecoin could break through resistance at $0.208 and start a potential rally.

However, if the price fails to maintain the support, it could face deeper declines. Therefore, traders should watch this key level closely, as it will determine whether the price trend remains bullish or if a bearish reversal is imminent.

Source: TradingView

What do Dogecoin’s network metrics suggest?

Looking at Dogecoin’s network activity, the daily active addresses and transaction count remain relatively low. As of the 28th of March 2025, the network shows 47,577 active addresses and just 14,020 transactions. 

This indicates that user engagement is not particularly strong at the moment, which can limit the potential for sustained price growth.

Therefore, without increased demand or activity, Dogecoin might struggle to break free from its current range despite bullish expectations in the futures market.

Source: Santiment

Which positions dominate liquidations—long or short?

The liquidation data reveals that long positions are dominating the liquidations. At the time of writing, $5.53 million in long positions were liquidated compared to just $421,680 in short positions.

This indicates that the market is under pressure, with long traders facing forced exits as the price struggles to increase.

The dominance of long liquidations suggests that the market is more vulnerable to a further decline rather than a surge in the short term.

Source: Coinglass

What does the MVRV ratio tell us about Dogecoin’s price potential?

The MVRV ratio for Dogecoin was at 0.546, indicating that the market price is slightly overvalued compared to its realized value.

This suggests that the price may struggle to rise significantly without an increase in demand.

Without new catalysts or increased investor interest, Dogecoin may face resistance at higher price levels. Therefore, unless there is a shift in market sentiment, the price may continue to consolidate or experience downward pressure.

Source: Santiment

What next for DOGE

Despite the bullish sentiment reflected in the Long-to-Short Ratio, the substantial liquidation of long positions points to increased bearish pressure.

The current technical levels, coupled with the overvaluation indicated by the MVRV ratio, suggest that Dogecoin may struggle to surge in price. 

Therefore, while the market sentiment is largely optimistic, the significant liquidation of long positions and weak market engagement suggest that Dogecoin’s price surge is unlikely in the immediate term.

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