Dogecoin ($DOGE ) has recently experienced a significant downturn, with traders withdrawing approximately $1.2 billion from open interest positions. This reduction, from $5.05 billion to $3.85 billion over the past week, indicates a notable decline in trader confidence.
The decrease in open interest suggests that many traders are closing their futures positions to mitigate potential losses amid the current price decline. This trend reflects a broader hesitancy among investors, who appear to be awaiting more stable market conditions before re-engaging.
Technical indicators further underscore the bearish sentiment. The Chaikin Money Flow (CMF) remains below the zero line, signaling weak capital inflows. This suggests a reluctance among investors to commit new capital, potentially delaying any price recovery.
Over the past ten days, Dogecoin's price has declined by nearly
