Dogecoin Open Interest Crashes To October 2024 Levels Before The Pump

Dogecoin’s open interest has crashed to ranges not seen since October 2024. This was notably simply earlier than the main meme coin recorded a major surge, elevating hypothesis that historical past would possibly repeat itself.

Dogecoin Open Interest Falls To October 2024 Levels

Dogecoin’s open curiosity has crashed beneath $1 billion, down over 16%, in line with Coinglass data. The final time the open curiosity dropped to those ranges was in October 2024, simply earlier than it started an uptrend which led to a high of $4.45 billion in December 2024. October 2024 additionally marked the underside for the DOGE price, because it rose from round $0.155 to as high as $0.46.

Dogecoin notably rose again then, partly due to Donald Trump’s presidential election victory and Elon Musk’s move to call a authorities company, the Department of Government Efficiency, after DOGE. Additionally, the Fed lowered charges on the time, which was additionally bullish for the main meme coin. 

It stays to be seen whether or not Dogecoin can replicate such a value surge this time, on condition that open curiosity has dropped to October 2024 ranges. It can also be price noting that the present macroeconomic outlook differs this time, with the Fed making a hawkish pivot and unlikely to decrease charges till a minimum of June. However, Musk recently mentioned Dogecoin, saying they might ship the meme coin to the moon subsequent 12 months. 

Meanwhile, crypto merchants on Binance look to be positioning for a value surge in hopes that this may be the underside for Dogecoin. The present lengthy/brief ratio is 2, indicating that almost all merchants are lengthy. However, DOGE’s lengthy/brief ratio throughout all exchanges continues to be beneath 1, indicating that almost all crypto merchants are nonetheless bearish and shorting the meme coin. 

DOGE Still Risks Dropping To $0.054

Crypto analyst Ali Martinez has indicated that Dogecoin might nonetheless drop to as little as $0.054. In an X post, he acknowledged that that is the extent he’s for a possible bounce. However, crypto analyst Mikybull Crypto suggested that the main meme coin might not drop to that stage, as DOGE’s RSI is presently at a historic stage that has acted as assist in previous cycles. As such, there’s the likelihood that it might bounce from right here. 

It is price noting that Dogecoin has seen a surge in metrics, together with derivatives trading volume, which has elevated by greater than 100% to $6.5 billion. Options buying and selling quantity and open curiosity have additionally surged by 381% and 135%, respectively, indicating that crypto merchants are actively buying and selling the meme coin. 

At the time of writing, the Dogecoin value is buying and selling at round $0.09075, down over 11% within the final 24 hours, in line with data from CoinMarketCap.