Dogecoin long positions on Binance Futures have reached an unprecedented 80%, indicating strong short-term bullish conviction among traders. However, data from on-chain metrics and spot markets suggests a divergent narrative. Despite futures traders’ enthusiasm for long positions, network health is deteriorating, with daily active addresses dropping by 22% over the past month.
The divergence between short-term speculative excitement and longer-term market hesitation becomes clear when examining whale transactions, spot volumes, and network activity. Whale transactions decreased significantly in early April, while spot volumes plummeted by 95% compared to February’s levels. Meanwhile, on-chain data projects caution, highlighting waning interest from key stakeholders.
The contrast between futures traders’ bullish sentiment and on-chain data suggests a market in conflict. The surge in long positions is temporary, and the advantage remains fragile. As Dogecoin’s price continues to decline, it appears that institutions or high-net-worth participants are offloading their holdings, contributing to the downturn.
Source: https://ambcrypto.com/dogecoin-longs-hit-80-on-binance-futures-traders-this-signifies