Dogecoin Open Interest Dumps To November 2024 Levels, Will Price Follow?
The post Dogecoin Open Interest Dumps To November 2024 Levels, Will Price Follow? appeared on BitcoinEthereumNews.com.
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Dogecoin’s open interest has been on a massive freefall for a while now as the memecoin continues to struggle to gain investor interest. As it stands, data shows that Dogecoin’s open interest has sharply declined since the beginning of March, plunging to levels not seen since November 2024. The rapid drawdown, tracked using data from CoinGlass, reflects a significant reduction in leveraged positions and trader appetite for the king of memecoins. Three-Month Slide: Dogecoin Open Interest Drops Sharply Open interest is crucial in measuring the interest in an asset, which in turn helps predict price movements. In the case of Dogecoin, its open interest reflects a trend of low interest. After peaking on January 18, Dogecoin’s open interest has been on a relentless freefall, with price action mirroring this downward trend. Since mid-January, Dogecoin’s open interest has been steadily evaporating, dropping from multi-month highs to a level now comparable to just before last year’s Q4 price rally. According to CoinGlass data, the reduction has not been abrupt but instead drawn out over the course of the past two months, highlighted by a sustained exit by traders and a cooling of bullish sentiment in the derivatives market. This is sentiment relayed from a continued fall in the Dogecoin price alongside the rest of the crypto market. At the time of writing, the Dogecoin open interest is sitting at $1.6 billion, 70.5% below its January 18 high peak of $5.42 billion. Potential Implications For DOGE’s Future Price Movement The persistent decline in Dogecoin’s open interest carries a number of implications for its future price direction, particularly in the context of momentum and liquidity in the derivatives market. Open interest is often used to assess the strength of a trend…
Filed under: News - @ March 23, 2025 8:08 am