Dogecoin Open Interest Sees Sharp 24% Drop, Where Does Price Go From Here?
06 Agosto 2024 - 5:30AM
NEWSBTC
The total open interest of any asset can help to narrow down what
traders are doing when it comes to a coin, and Dogecoin is no
different. As with any metric, a rise or fall within a period of
time can be significant as traders choose to take or not take
positions in that asset. In Dogecoin’s case, there has been a
decline in the open interest over the last week, and this could
have some implications for the DOGE price going forward. Dogecoin
Open Interest Falls 24% According to data from Coinglass, the
Dogecoin open interest has fallen 24% in the last week alone. This
figure comes from July 18 when the open interest hit $707 million,
going into August, with a total open interest value of $420
million. Related Reading: XRP Ledger Sees Sharp Decline In Major
Metric That Threatens To Send XRP Price To $0.2 This decline in the
Dogecoin open interest follows the market crash that has rocked
cryptocurrencies, eventually sending the DOGE price below $0.09 by
Monday. It shows a drastic reduction in the number of open
positions, suggesting a reduction in interest. This is not the
lowest that the Dogecoin open interest has been this year. However,
it is interesting due to the current condition of the market. For
example, the Dogecoin price has erased most of its gains from last
year, pushing it back toward February 2024 lows. The correlation
between the Dogecoin price and the open interest is now more
glaring with this crash. In the time that the open interest has
fallen 24%, the Dogecoin price has seen around a 40% decrease in
price. What Does Historical Data Say? With the correlation between
open interest and the Dogecoin price, using historical data could
help to narrow down what might be on the horizon for Dogecoin. For
example, the last time that the Dogecoin open interest saw a sharp
drop, the price also followed. In March 2024, the DOGE open
interest peaked at $2.21 billion, and the price saw its highest
level so far this year as well. Following this, there was a crash
in open interest and the DOGE price went from $0.22 to $0.18
alongside it, all in the month of March. Related Reading: VanEck
CEO Compares Bitcoin Adoption To Gold, Reveals Why Price Will Touch
$350,000 This suggests that for a recovery to begin for the
Dogecoin price, a rise in the open interest would be a good
development. If the open interest flattens out from here, then the
Dogecoin price could enter a phase of consolidation that could see
it tread around $0.08 for a while. Mainly, however, a recovery for
the DOGE price would be imminent if the Bitcoin price were to begin
rising again. In this case, a market-wide rally would see Dogecoin
follow, breaking the current bearish trend. Featured image created
with Dall.E, chart from Tradingview.com
Dogecoin (COIN:DOGEUSD)
Gráfica de Acción Histórica
De Ago 2024 a Sep 2024
Dogecoin (COIN:DOGEUSD)
Gráfica de Acción Histórica
De Sep 2023 a Sep 2024