Dogecoin’s open interest has been on a massive free fall for some time now when the same continues to struggle to obtain interests of investors. In the current state of things, the data show that the open interest of Dogecoin has decreased sharply since the beginning of March, plunging at levels not seen since November 2024. The rapid reduction, followed using Coinglass data, reflects a significant reduction in the levers and the appetite of the merchants for the King of the same.
Three -month slide: the open interest of Dogecoin falls strongly
The open interest is crucial By measuring interest in an asset, which in turn helps to predict pricing movements. In the case of Dogecoin, its open interest reflects a tendency of low interest. After having culminated on January 18, the open interest of Dogecoin has been on an implacable free fall, price Action reflecting this downward trend. Since mid-January, Dogecoin’s open interest has not evaporated, going from summits of several months to a level now comparable to just before the prices rally of the fourth quarter of last year.
According to At Correglass dataThe reduction has not been abrupt, but rather drawn in the past two months, underlined by an outing supported by traders and a cooling of the bullish feeling on the derivative market. It is a feeling relayed by a continuous fall in the price of dogecoin alongside the rest of the cryptography market. At the time of writing the editorial staff, Dogecoin’s open interest is $ 1.6 billion, 70.5% below its high January 18 summit of $ 5.42 billion.
Potential implications for the Future Price Movement of DOGE
The persistent decrease in the open interest of Dogecoin leads to a certain number of implications for its future price management, in particular in the context of the momentum and liquidity on the derivative market.
Open interest is often used to assess the strength of a trend (whether up or down) and net reductions generally suggest that traders withdraw positions due to triggers, liquidations, or they do not see the long term in the asset.
In theory, a decrease in the open interest of Dogecoin indicates a corresponding reduction in liquidity, which can also damage any price of prices. An increase in open interest, however, is final of an increase in liquidity.
Now that the open interest has returned to its levels of November 2024, this means that liquidity and feeling surrounding the meme piece have lost about two months of work, and speed Any potential upward trend from here.
At the time of writing the editorial staff, Dogecoin is negotiated at $ 0.1684, up 0.52% in the last 24 hours. However, the wider trend remains negative, the same in 34% in the last 30 days. This prolonged reduction also had consequences for the standing on the larger market, And it has now been exceeded by Cardano in terms of market capitalization.
Dall-e star image, tradingview graphic
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