Dogecoin Open Interest Drops 24%, Where Will the Price Go?

Last week, Dogecoin (DOGE) Open Interest dropped 24%. According to my data, the open interest was $707 million on July 18, while it dropped to $420 million in early August. This change is associated with the market crash that caused the DOGE price to drop below $0.09, indicating a decrease in market interest.

Despite the drop in open interest, this is not the lowest level Dogecoin has seen this year. However, current market conditions make this change interesting. The DOGE price fell back to the lows of February 2024, and the drop in open interest has a direct correlation with the drop in price. At the same time as the open interest fell by 24%, the DOGE price also fell by about 40%.

Historical data shows that changes in open interest usually affect the price of DOGE. For example, in March 2024, DOGE open interest peaked at $2.21 billion, and the price subsequently fell from $0.22 to $0.18. If open interest increases again, DOGE prices may recover; otherwise, prices may consolidate around $0.08.

The future trend of Dogecoin prices may also be affected by changes in Bitcoin prices. If Bitcoin prices rise, a market-wide rebound may drive DOGE prices out of the current bearish trend.

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