After the failure of SpaceX rocket testing and the drop in Bitcoin prices, Dogeday became a "hype" type of activity for DOE.Dogcoin, commonly known as "Dogday," suffered a major blow on April 20th due to the failed launch of SpaceX's interstellar rocket and the broader crypto market downturn
After the failure of SpaceX rocket testing and the drop in Bitcoin prices, Dogeday became a "hype" type of activity for DOE.
Dogcoin, commonly known as "Dogday," suffered a major blow on April 20th due to the failed launch of SpaceX's interstellar rocket and the broader crypto market downturn.
The SpaceX rocket with a dog coin mascot printed on the side disintegrated four minutes after launch. Nevertheless, company employees, including Elon Musk, cheered for the failure as they expressed optimism about another test in the coming months.
Following Musk's recent gimmicks, he temporarily changed Twitter's logo to the Dogecoin mascot.
This release has caused a great sensation within the Dogcoin community. The graphic designer of the Dogecoin community, DogeDesigner, enthusiastically posted the news about the rocket launch on Twitter.
However, Dogeday seems to have turned into a selling news event, with the DOGE/USD currency pair dropping 11.88% from its daily high of $0.093 to $0.083.
Maintain a high position in the DOGE position
According to Coinglas' data, despite the price decline, the open interest (OI) volume of Dogcoin futures contracts is still higher than the high of $470 million in January 2023. OI trading volume represents the number of open positions in the futures market.
On April 4th, after Twitter changed its logo to Chaigou (the dog breed that once represented Dog Coin), the OI trading volume of Dog Coin surged to an annual peak of $580 million.
After the logo change, the DOGE/USD currency pair showed significant volatility, rising more than 21% to an annual high of $0.10 on April 4th. However, after social media platforms restored their original Blue Bird logo, prices and IO transaction volume significantly decreased. Logo changes are only valid from April 4th to April 7th.
A report by Kaiko, a cryptographic analysis company, states:
Since ElonMusk took over Twitter last year, DOE's holdings have roughly doubled, indicating strong capital inflows
After a wave of liquidation, the OI trading volume of futures contracts decreased to $460 million. However, OI trading volume rebounded again to $533 million, sparking excitement around rocket launches.
Although the decline in the price of DOGE has led to widespread liquidation of approximately $104 million, OI trading volume is higher than the peak in January 2023, indicating that the token may experience greater volatility.
The long short ratio of the futures market shows a greater tendency towards short orders, which is a counter trend signal for further gains.
At the same time, the financing interest rate of perpetual contracts has turned positive since the downturn, increasing the possibility of further downward pressure from bulls.
Price Analysis of Dog Coin
The supply distribution of DOGE whale addresses has peaked, with addresses holding over $10 million accumulating rapidly. However, these whales immediately sold their DOGE after Twitter changed its logo back.
These addresses repeat the same accumulation and distribution before and after Dogeday, selling heavily when Dogeday falls.
The DOGE/USD currency pair has broken the bullish parallel trend, raising concerns about further downside risks.
Based on the scale of parallel channels, DOGE/USD is expected to decline by 15% from the current level of 0.083 US dollars. A decrease below this range will occur simultaneously with the support level of around $0.072 for the DOGE.
The SpaceX Starship rocket failed to launch on Dogeday, coupled with low Bitcoin prices, which dealt a blow to the price of DOGE.
Despite setbacks, the holdings of dog currency futures contracts remain high, indicating strong capital inflows. However, the recent price decline and increased selling of DOE whales indicate further downside risks, as the DOE/USD currency pair falls below its bullish support level.
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