Dogecoin’s open interest has crashed to levels not seen since October 2024. This was notably just before the leading meme coin recorded a significant surge, raising speculation that history might repeat itself.
Dogecoin Open Interest Falls To October 2024 Levels
Dogecoin’s open interest has crashed below $1 billion, down over 16%, according to Coinglass data. The last time the open interest dropped to these levels was in October 2024, just before it began an uptrend which led to a high of $4.45 billion in December 2024. October 2024 also marked the bottom for the DOGE price, as it rose from around $0.155 to as high as $0.46.
Dogecoin notably rose back then, partly thanks to Donald Trump’s presidential election victory and Elon Musk’s move to name a government agency, the Department of Government Efficiency, after DOGE. Additionally, the Fed lowered rates at the time, which was also bullish for the leading meme coin.
It remains to be seen whether Dogecoin can replicate such a price surge this time, given that open interest has dropped to October 2024 levels. It is also worth noting that the current macroeconomic outlook differs this time, with the Fed making a hawkish pivot and unlikely to lower rates until at least June. However, Musk recently mentioned Dogecoin, saying they could send the meme coin to the moon next year.
Meanwhile, crypto traders on Binance look to be positioning for a price surge in hopes that this might be the bottom for Dogecoin. The current long/short ratio is 2, indicating that most traders are long. However, DOGE’s long/short ratio across all exchanges is still below 1, indicating that most crypto traders are still bearish and shorting the meme coin.
DOGE Still Risks Dropping To $0.054
Crypto analyst Ali Martinez has indicated that Dogecoin could still drop to as low as $0.054. In an X post, he stated that this is the level he is looking at for a potential bounce. However, crypto analyst Mikybull Crypto suggested that the leading meme coin may not drop to that level, as DOGE’s RSI is currently at a historical level that has acted as support in past cycles. As such, there is the possibility that it could bounce from here.
It is worth noting that Dogecoin has seen a surge in metrics, including derivatives trading volume, which has increased by more than 100% to $6.5 billion. Options trading volume and open interest have also surged by 381% and 135%, respectively, indicating that crypto traders are actively trading the meme coin.
At the time of writing, the Dogecoin price is trading at around $0.09075, down over 11% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com
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