Skip to main content

Dogecoin Open Interest Crashes Over $3 Billion Since January, Will The Bloodbath Continue?

Dogecoin’s open interest has crashed over $3 billion since January, sparking a bearish sentiment for the foremost meme coin. This critical metric is still at risk of crashing further, given the current outlook in the broader crypto market. 

Dogecoin’s Open Interest Crashes Over $3 Billion Since January

Coinglass data shows that Dogecoin’s open interest has crashed over $3 billion since January and currently stands at $1.91 billion. The derivatives volume has also declined by almost 30% and currently stands at $3.71 billion. This development is bearish for DOGE as it indicates a declining interest in its ecosystem among traders. 

Dogecoin’s open interest is likely to crash further in the meantime, given the bearish sentiment among investors. This bearish sentiment has resulted from the downtrend in the crypto market, which has also led to a massive crash in the Dogecoin price. The foremost meme coin is currently at risk of losing the $0.2 psychological price level, which analysts like Ali Martinez have warned could mark the end of its bull run.

Dogecoin

Beyond the crash in Dogecoin’s open interest, other metrics paint a bearish picture for Dogecoin and suggest that the decline could continue. In an X post, Martinez revealed that DOGE’s network activity has significantly contracted, with new address creation dropping from 1.29 million in November to just 30,815 today. 

Similarly, DOGE’s active addresses have dropped from 2.66 million in November last year to around 130,282 today. Meanwhile, DOGE’s whales are choosing to remain on the sidelines amid this downtrend. Their absence could also contribute to a further downtrend, given their usual impact on the meme coin’s price. 

The $1 Target Still In Play Despite Downtrend

Crypto analyst Trader Tardigrade suggested that the Dogecoin price can still rally to the much-anticipated $1 target despite this market downtrend. In an X post, he revealed that the foremost meme coin is following the same pattern as the 2017 bull run. In line with this, he asserted that DOGE is ready for the next surge. 

The analyst’s accompanying chart showed that the Dogecoin price could rally above $1.7 when this next surge occurs. Crypto analyst DOGECAPITAL stated that DOGE will move towards $1.7 when this consolidation phase is complete. He remarked that this move would mirror previous cycles where the meme coin hit the same parallel level of resistance. 

Meanwhile, the analyst is still convinced that the Dogecoin price could eventually rally to as high as $10 in this market cycle. This is based on a parallel channel which he suggested is mirroring the 2017 and 2021 bull cycles. 

At the time of writing, the DOGE price is trading at around $0.2, down almost 2% in the last 24 hours, according to data from CoinMarketCap.

Dogecoin

from Bitcoinist.com https://ift.tt/0Z8lO15

Comments

Popular posts from this blog

Bitcoin ETFs Post Second Straight Week Of $500 Million Outflow — Details

The US-based spot Bitcoin ETFs (exchange-traded funds) recorded their second consecutive week of significant outflows over the last five-day trading period. This recent run of disappointing performances reflects the ongoing shift in investor sentiment in the United States. Over the past year, strong inflows into the US Bitcoin ETF market have constantly been associated with positive action for the BTC price. Fittingly, the price of Bitcoin has been consolidating over the past few weeks, struggling to pick up any real momentum. Bitcoin ETFs Record Fourth Consecutive Outflow Day According to the latest market data , the US Bitcoin ETFs registered a total daily outflow of $62.77 million on Friday, February 21. This latest round of withdrawals marked the fourth straight day (and the eighth day in the last nine trading days) that the crypto-based products would witness a net capital outflow. The Grayscale Bitcoin Trust (with the ticker GBTC) accounted for a larger percentage of Friday’...

Bitcoin Remains Range-Bound As Volatility Declines – Analyst Explains Price Action

Bitcoin has experienced frustrating price action in recent weeks, leaving investors impatient about its short-term direction. The price has been testing crucial supply levels between $98K and $100K, struggling to break out as uncertainty dominates the market. The lack of a clear move has led to speculation about whether BTC is preparing for a breakout or another correction. Adding to the uncertainty, the market was hit by negative news on Friday when crypto exchange Bybit was hacked, resulting in the theft of $1.4 billion in ETH. The incident caused fear and volatility, briefly dragging prices lower. However, Bybit responded quickly to reassure investors, easing some of the initial panic and stabilizing the market. Despite this, Bitcoin continues to consolidate in a tight range. Crypto expert Daan shared an analysis on X, noting that BTC is still ranging while volatility is steadily decreasing. As price compression increases, traders are on high alert for a potential explosive move....

OpenSea Dodges A Bullet As SEC Drops Investigation—Details

In a move that many in the crypto industry view as a positive signal, the US Securities and Exchange Commission (SEC) has officially discontinued its investigation into OpenSea, the leading NFT marketplace. This decision concludes months of uncertainty regarding the regulatory status of NFTs and their classification under US securities laws. SEC Decision Signals A Shift On February 21, 2025, Devin Finzer, the CEO and co-founder of OpenSea, said the SEC will not take any enforcement action against the firm. This comes following the August 2024 Wells Notice to OpenSea issued by the SEC, which indicated the possibility of legal action on alleged unregistered securities offenses. The outcome of this case suggests a possible shift in the way authorities handle NFTs, therefore affecting the whole scene of digital assets. For the industry, this outcome has been seen as a major turning point. Though they are in rivalry with OpenSea, Chris Akhavan, the Chief Business Officer of Magic Eden,...