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Dogecoin open interest drops by $458 million

Dogecoin open interest drops by $458 million

GrafaGrafa2024/10/09 04:05
By:Mahathir Bayena

Dogecoin (CRYPTO:DOGE) has seen a sharp decline in investor interest as its Open Interest (OI) dropped from $1.35 billion to $801.99 million in just 24 hours. 

This $458 million reduction indicates a significant shift, with traders removing their positions amid concerns of a potential downturn. 

The cryptocurrency, which was priced at $0.13 just two weeks ago, has fallen by 8.86% over the past seven days, raising doubts about the anticipated recovery to its yearly high.

Open Interest reflects the total value of all open positions in the market, providing insight into speculative activity. 

A rising OI suggests aggressive buying, while a decline indicates that sellers are closing positions. 

According to this data, the massive reduction in OI highlights bearish sentiment, with sellers dominating the market and pushing the price lower.

Adding to this, Dogecoin’s whale activity has significantly decreased. 

Data from IntoTheBlock shows that the Large Holders Netflow, which measures the difference between the value of coins bought and sold by whales, has also dropped. 

On October 4, whale activity surged, but by October 7, the momentum had faded, with large investors selling off DOGE, putting downward pressure on the price.

According to technical analysis, Dogecoin has formed a head-and-shoulders pattern on the daily chart, signaling the end of its recent uptrend. 

The current price of DOGE is $0.10, and with selling pressure outweighing buying activity, it is likely to drop to $0.093. 

Should the price break this level, it could fall further to $0.080.

If buyers re-enter the market and hold their positions, DOGE could see a reversal, potentially pushing the price up to $0.15. 

However, based on current trends, the outlook for Dogecoin remains bearish in the near term.

At the time of writing, the Dogecoin price was $0.1087.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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