Recent pump and dump of the rate Dogecoin (DOGE) have caused big losses to traders of options on the meme-based cryptocurrency.
November 19th at the market Dogecoin The bull rally resumed and within a few hours the coin has risen in price by 11%. However, the upward trend quickly faded, and the asset price fell by 10%, falling below the level recorded before the pump.
These turmoils have had a major impact on the options market, with sharp price swings were liquidated long positions to buy DOGE worth $14 million, and short positions worth $13,8 million. Traders who opened both longs and shorts suffered approximately the same amount of losses.
However, compared to the previous dump that occurred on November 12, the bearish pressure was weaker. This is evidenced by a significant drop in the number of coins sold on cryptocurrency exchanges. Therefore, the number of traders has decreased Dogecoin , who decided to take profits.
On Tuesday, the DOGE rate broke through the bearish trend line that started on November 12, but the bulls failed to gain a foothold above this barrier, and the coin's value fell to the line of a shorter-term upward trend. In this regard, it can be assumed that over the next two days, the rate volatility level Dogecoin will decrease and the bearish trend will start after the price breaks the lower line of the triangle.