Dogecoin Loses 14% in June Amid Bearish Dominance

Dogecoin [DOGE] experienced a tumultuous June, with the memecoin shedding over 14% of its value. Despite a weekly gain of 5.47%, the overall downward trend has left traders on edge, with a clear direction for DOGE remaining uncertain as both bulls and bears vie for control.

On the 30th of June, DOGE's market dynamics revealed a stark contrast between unrealized gains and losses. Unrealized losses amounted to $132.2 million, while unrealized profits stood at a mere $5 million, resulting in a 26:1 ratio of losing to winning trades. This disparity indicates that for every profitable trade, 26 others were experiencing losses. The term "unrealized" here means that traders still have open positions, and these losses or gains have not yet been finalized.

The persistence of short traders, despite the heavy losses, suggests a strong belief in a further decline of DOGE. According to data from CoinGlass, Taker Sell Volume exceeded buys, with 51.97% of trades coming from shorts. Additionally, the Long/Short Ratio fell to 0.92, indicating a tightening grip of bearish dominance. This metric falling below 1 typically signals rising short pressure, suggesting that sellers are currently dictating the market's pace.

Another critical metric supporting the short traders' case is the Liquidation Heatmap. DOGE's Liquidity Heatmap revealed stacked clusters below $0.165, the current price zone. These clusters, which are typically unfilled leveraged orders, act like a gravitational pull, potentially drawing the price towards them. If this decline materializes, those unrealized losses would flip into gains for short sellers, with DOGE potentially testing $0.162 or even sliding to $0.159. These are critical liquidation zones for long positions, and if hit, they would convert unrealized short losses into realized gains.

Despite the bearish sentiment, bulls are not giving up easily. According to CoinGlass data on the 30th of June, bulls accumulated $5.5 million worth of DOGE, bringing the total accumulation over the past week to $49.16 million. This accumulation suggests that some investors are positioning for a potential breakout to the upside, with bullish activity so far helping to suppress a steeper price decline. However, there are signs that bullish momentum may be fading. After peaking at a weekly accumulation of $105 million on the 9th of June, the amount of DOGE bought from the market has been steadily declining. This drop indicates waning investor interest in DOGE, possibly due to the token’s weak performance. If this trend continues, bears could regain full control of the market, potentially pushing DOGE lower in the coming trading sessions.