Dogecoin Open Interest Drops to October 2024 Levels
Dogecoin’s open interest has plunged to levels not seen since October 2024, sparking speculation that history could repeat itself as the leading meme coin experienced a significant surge shortly after a similar drop in the past.
Significant Decrease in Dogecoin’s Open Interest
According to Coinglass data, Dogecoin’s open interest has fallen below $1 billion, marking a decrease of over 16%. The last time open interest reached these levels was in October 2024, just before a surge that propelled it to a high of $4.45 billion in December 2024. This period also coincided with a rise in the DOGE price from around $0.155 to as high as $0.46.
During the previous surge, Dogecoin’s price was boosted by various factors, including Donald Trump’s election victory, Elon Musk’s endorsement, and the Federal Reserve’s rate cuts, all of which contributed to the coin’s bullish momentum.
It remains uncertain whether Dogecoin can replicate a similar price surge this time, given the current macroeconomic conditions, with the Federal Reserve taking a more hawkish stance and unlikely to implement rate cuts until at least June. However, Elon Musk recently expressed optimism about Dogecoin’s future, hinting at a potential moonshot for the meme coin next year.
Despite the overall sentiment among crypto traders on Binance leaning towards a price surge, with a long/short ratio of 2 indicating bullish sentiment, the long/short ratio for DOGE across all exchanges is still below 1, suggesting that most traders are bearish and shorting the coin.
DOGE’s Potential Price Drop to $0.054
Crypto analyst Ali Martinez has suggested that Dogecoin could drop to as low as $0.054 before potentially bouncing back. However, another analyst, Mikybull Crypto, believes that DOGE may not reach that level, citing historical RSI levels that have previously acted as support during market cycles.
Despite the price drop, Dogecoin has seen a surge in derivatives trading volume, which has increased by over 100% to $6.5 billion. Options trading volume and open interest have also experienced significant growth, indicating active trading activity surrounding the meme coin.
Currently, Dogecoin is trading at around $0.09075, reflecting a decrease of over 11% in the last 24 hours, according to data from CoinMarketCap.
Image source: Getty Images, chart source: Tradingview.com
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