Dogecoin (DOGE) experienced a challenging month in June, suffering a decline of over 14% and incurring $132 million in unrealized losses for its traders. Despite reporting weekly gains of approximately 5.47% on June 30, underlying market tension suggests that the situation may worsen. Uncertainty looms as both bullish and bearish forces compete to determine the memecoin’s next direction. As of June 30, there was a striking disparity between unrealized gains and losses.
With unrealized losses tallying at $132.2 million and only $5 million in profits, the ratio stood at an alarming 26:1. This ratio indicates that for every successful trade, there are 26 trades in negative territory. Notably, the term “unrealized” refers to open positions still active in the market, meaning profits or losses have not yet been finalized. The pressing question arises: why do short traders continue to maintain their positions despite these significant losses?
Insights suggest that they anticipate a further decline in DOGE, hoping for a favorable market shift. Moreover, key metrics bolster the shorts’ outlook. Data revealed that Taker Sell Volume surpassed Buys, indicating bearish dominance with 51.97% of trades being short. Additionally, the Long/Short Ratio dipped to 0.92, suggesting an increase in short pressure.
The Liquidation Heatmap also highlighted critical liquidity clusters below the $0.165 price, signifying that should the price decline, these unrealized losses could convert to realized gains for short sellers. Contrastingly, while bearish sentiment prevails, bulls are not entirely resigned. Data from June 30 showed that bulls had accumulated $5.5 million worth of DOGE, increasing total accumulation for the week to $49.16 million. Nevertheless, signs of declining bullish momentum are apparent.
Following a peak of $105 million in weekly purchases on June 9, the drop in DOGE acquisitions may indicate diminishing investor interest, allowing bears to potentially reclaim control and push DOGE lower in upcoming trading sessions.