Dogecoin Price Slumps as Whales Dump Tokens and Traders Go Short

Dogecoin's price has been under pressure since August 28, with selling pressure dominating for three consecutive days. The cryptocurrency dropped 2.48% to $0.082 on August 31, with sell-side pressure outpacing buying by $21 million during that period.

Whales holding between 1M, 100M DOGE have shed a significant amount of tokens since August 21, with 260 million tokens sold off in the past week. This has led to a decrease in open interest from $1.58 billion to $1.27 billion, indicating that futures traders are closing long positions.

The long/short ratio on August 31 read 0.87, meaning more traders are positioned short than long. Futures trading volume jumped 99% to $1.34 billion, showing high activity as traders react to the price move.