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Dogecoin open interest nears record low: Is this the end of DOGE’s 2024 rally?
The cryptocurrency market has been facing a lot of uncertainty lately, and it seems like Dogecoin is no exception. According to recent data, the platform’s open interest has plummeted to its lowest level since November 10th, with traders unwinding their positions amid reduced optimism.
As seen in the graph below, this drastic decline in open interest closely mirrors Dogecoin’s 20% price drop over the past week. This raises serious concerns about DOGE’s short-term recovery prospects.
A recent surge in open interest in April saw a yearly high of $12 billion, only to experience a significant drop through October. There was a brief rebound earlier this month, but it seems like OI is on track to plummet further and reach its lowest level since the mentioned date.
This trend raises questions about Dogecoin’s future prospects. The data suggests that traders are becoming increasingly cautious and unwilling to open new positions, pointing towards a potential bearish signal.
According to a recent report, MDIA (Mean Daily In/Out Value) indicates long-term holders have been opting for holding onto their assets instead of actively trading or reallocation. This suggests stagnation in the market, which is usually seen as a bad sign.
In addition to this, Dogecoin is struggling to regain its footing below key support levels. The cryptocurrency has fallen beneath the $0.35 threshold and is currently hovering around the $0.32 mark.
Source: ambcrypto.com
