Dogecoin price recovers from the heaviest shorting of 2023
- Dogecoin witnessed its heaviest shorting of 2023 one week ago.
- DOGE price wiped out losses from June, climbing past $0.07 in July.
- On-chain indicators are yet to flip bullish for the Shiba-Inu-themed meme coin.
Dogecoin, the largest meme coin in the crypto ecosystem, is recovering from the largest shorting event in 2023. Around June 29, the highest DOGE shorting level of the year was recorded by crypto intelligence tracker Santiment.
DOGE price has completed its recovery from the Securities & Exchange Commission’s (SEC) clampdown and climbed above the $0.07 level.
Also read: Pro-XRP lawyer slams Coinbase for delisting XRP, comments on SEC lawsuit against the exchange
Dogecoin price makes a mini run past $0.07 after weeklong decline
The Shiba-Inu-themed cryptocurrency climbed past the $0.07 level for the first time since the largest shorting event in 2023. Typically, market participants short an asset when they expect the price to decline in the future.
DOGE traders heavily shorted the meme coin, evident from the funding rate on the largest crypto exchange – Binance.
Dogecoin mildly decouples from other assets, sees massive bounce
In finance being short in an asset means investing in such a way that the investor will profit if the value of the asset falls. This is the opposite of a more conventional "long" position, where the investor will profit if the value of the asset rises.
DOGE price has recovered from the decline and made a comeback above $0.07, as seen on Binance. It's important to note that on-chain metrics have not flipped bullish yet. Social dominance, a metric that identifies the mentions of the asset on platforms like Twitter, has remained low.
DOGE/USDT one-day price chart Binance
The DOGE price recovery pump was largely ignored by market participants, however, making it likely that the recovery is unsustainable.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
