{"id":507227,"date":"2022-11-04T19:22:00","date_gmt":"2022-11-04T16:22:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/dogecoin-trader-explains-why-shorting-doge-now-makes-sense\/"},"modified":"2022-11-04T19:22:00","modified_gmt":"2022-11-04T16:22:00","slug":"dogecoin-trader-explains-why-shorting-doge-now-makes-sense","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/dogecoin-trader-explains-why-shorting-doge-now-makes-sense\/","title":{"rendered":"# Dogecoin trader explains why shorting DOGE now makes sense"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a281efe19a8b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a281efe19a8b\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/dogecoin-trader-explains-why-shorting-doge-now-makes-sense\/#%E2%80%9D_Dogecoin_trader_explains_why_shorting_DOGE_now_makes_sense_%E2%80%9C\" >&#8221; Dogecoin trader explains why shorting DOGE now makes sense &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/dogecoin-trader-explains-why-shorting-doge-now-makes-sense\/#Short_Dogecoin_hard\" >Short Dogecoin hard?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/dogecoin-trader-explains-why-shorting-doge-now-makes-sense\/#Overbought_correction_begins\" >Overbought correction begins<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/dogecoin-trader-explains-why-shorting-doge-now-makes-sense\/#DOGE_on-chain_data\" >DOGE on-chain data<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Dogecoin_trader_explains_why_shorting_DOGE_now_makes_sense_%E2%80%9C\"><\/span>&#8221; Dogecoin trader explains why shorting DOGE now makes sense &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-4b69a2fe>Dogecoin (DOGE) has surged nearly 100% quarter-to-date (QTD) on hopes that Elon Musk would integrate the token onto the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> platform. However, DOGE&#8217;s potential to continue its uptrend in the coming weeks is low, one popular market analyst argues.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Short_Dogecoin_hard\"><\/span>Short Dogecoin hard?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Independent, pseudonymous market analyst GCR said he is moderately short on DOGE based on its price&#8217;s recent reaction to a Musk tweet. Notably, DOGE formed a local top at $0.158 on Nov. 1.\u00a0The same day, Musk shared a picture of his pet Shiba Inu wearing a t-shirt with the Twitter logo.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"und\" dir=\"ltr\"> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/eaIYaDRBnu\">pic.twitter.com\/eaIYaDRBnu<\/a><\/p>\n<p>\u2014 Elon Musk (@elonmusk) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/elonmusk\/status\/1587297730631696384?ref_src=twsrc%5Etfw\">November 1, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>GCR argues that the Musk effect is wearing off when it comes to Dogecoin&#8217;s potential integration into Twitter, meaning that most of the gains are already priced in. Therefore, if the actual integration h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ens, it will likely become a sell-the-<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> event.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">dog stock only has 2 bullets<\/p>\n<p>bullet 1 &#8211; musk tweeting\/teasing about integration;  already fired <\/p>\n<p>bullet 2 &#8211; official integration into twitter;  hasn&#8217;t shot, but would be sell the news <\/p>\n<p>i&#8217;m moderate short on doggo, but leaving room open to short harder if they fire 2nd bullet<\/p>\n<p>\u2014 GCR (@GCRClassic) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/GCRClassic\/status\/1588316188475502592?ref_src=twsrc%5Etfw\">November 3, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Overbought_correction_begins\"><\/span>Overbought correction begins<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Meanwhile, Dogecoin continued its correction move on Nov. 4, three days after topping out at $0.158.<\/p>\n<p>DOGE&#8217;s price dropped to as low as $0.115 on Nov. 4, in part due to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.platformer.news\/p\/inside-twitters-product-roadmap-under\">rumors<\/a> of Twitter pausing its crypto wallet development project. That brought the token&#8217;s net percentage correction from the Nov. 1 local top to nearly 27%.<\/p>\n<p>In addition, the downside move surfaced due to its extremely overbought conditions\u00a0with\u00a0the highest relative strength index (RSI) since\u00a0April 2021.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-11\/c5c14dea-d81c-4755-851d-657018d65486.png\"><figcaption style=\"text-align: center;\"><em>DOGE\/USD three-day price chart. Source; TradingView<\/em><\/figcaption><\/figure>\n<p>The correction has prompted Dogecoin price to retest its December 2021-May 2022 support (defined by the $0.108-$0.124 range, the red bar in the chart above) for a potential pullback. The coin may reach $0.185, a level coinciding with its 0.236 Fib line, if the recovery occurs.<\/p>\n<p>Conversely, a break below the\u00a0$0.108-$0.124 range could have DOGE drop to $0.055 as its primary downside target, down 55% from current price levels.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"DOGE_on-chain_data\"><\/span>DOGE on-chain data<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Furthermore, Dogecoin&#8217;s on-chain data reveals a consistent drop in key metrics entering November, which could add more sell-pressure.<\/p>\n<p><strong><em>Related:\u00a0Shiba Inu price drops to record low vs Dogecoin \u2014 Will history repeat with a 150% rally?<\/em><\/strong><\/p>\n<p>For instance, DOGE&#8217;s Twitter-led price rally coincided with a sharp rise in whale transaction count (worth over $100,000), suggesting that they supported the upside move. But after Nov. 1, fewer whales have interacted with the Dogecoin network.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-11\/7239f7c7-86f9-4f89-aef3-d6c492ec3fb6.png\"><figcaption style=\"text-align: center;\"><em>Dogecoin whale transaction count. Source: Santiment<\/em><\/figcaption><\/figure>\n<p>Meanwhile, the Dogecoin supply distribution across addresses holding between 1,000 and 10 million DOGE tokens has fallen alongside the price. Conversely, the supply controlled by addresses holding more than 10 million DOGE tokens has increased modestly.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-11\/41a7563a-fba9-446b-9bf3-3471ffa6e02f.png\"><figcaption style=\"text-align: center;\"><em>Dogecoin supply distribution. Source: Santiment<\/em><\/figcaption><\/figure>\n<p>In addition, the addresses holding below 100 DOGE have been increasing, hinting that retail investors have been offsetting whales&#8217; selling pressure to a certain degree.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/dogecoin-trader-explains-why-shorting-doge-now-makes-sense\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Dogecoin trader explains why shorting DOGE now makes sense &#8220; Dogecoin (DOGE) has surged nearly 100% quarter-to-date (QTD) on hopes that Elon Musk would integrate the token onto the Twitter platform. However, DOGE&#8217;s potential to continue its uptrend in the coming weeks is low, one popular market analyst argues. Short Dogecoin hard? Independent, pseudonymous&#8230;<\/p>\n","protected":false},"author":1,"featured_media":507228,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvOGU3ZTU2NjMtMzhhMi00YWZmLTg1NTYtZjU1NTJkNTMyZjIyLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,86883,74939,78261,39394,73785,10401],"class_list":["post-507227","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-dogecoin","tag-market-analysis","tag-tech-analysis","tag-elon-musk","tag-markets","tag-twitter"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/507227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=507227"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/507227\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/507228"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=507227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=507227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=507227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}