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Dogecoin open interest nears record low: Is this the end of DOGE’s 2024 rally?
Dogecoin has seen a significant decline in its open interest, plummeting to $1.42 billion. This drastic drop is a stark contrast to its April peak of $12 billion and raises concerns about the cryptocurrency’s short-term recovery prospects.
Dogecoin’s recent price decline to $0.32 has led to traders unwinding their positions, resulting in a significant contraction of open interest. The sudden bearish sentiment is reflected in Dogecoin’s 20% drop over the past week.
The data provided by Santiment shows that there is a sustained drop in open interest during the recent price decline. This suggests that traders are no longer optimistic about the cryptocurrency’s short-term recovery and are choosing to hold their assets rather than opening new positions.
Furthermore, the MDIA (Mean Daily Active Address) has seen a significant increase to 335 days. This data supports the notion that long-term holders are not actively trading or reallocating their assets, resulting in stagnation within the market. Historically, a rising MDIA has correlated with reduced liquidity and lower demand, often seen as a bearish signal.
These indicators align with the narrative of cautious sentiment dominating Dogecoin’s short-term outlook. The lack of fresh capital or speculative activity in the DOGE market is reinforced by these metrics, supporting the notion that the cryptocurrency may not recover any time soon.
In conclusion, the recent decline in open interest and stagnation within the market suggests a bleak future for Dogecoin.
Source: ambcrypto.com
