In a market where most altcoins have lost traction, Dogecoin (DOGE) continues to show signs of resilience. Although open interest (OI) fell by 40% from its July peak, staying above $3 billion reveals that the confidence of traders and investors remains strong.
Why Open Interest matters for traders
Open interest measures the total number of open futures contracts. In cryptocurrencies, high OI indicates activity and liquidity, factors that often precede significant movements.
January 2025: record of $5.5B in OI.
July 2025: second peak of $5.35B.
August 2025: adjustment to $3B after price correction, but without massive capitulation.
💡 Key fact: The last time DOGE maintained such high OI after a correction, it experienced a rally of over 50% in a few weeks.
Technical signals and correlations
Price recovery: DOGE has risen 7% so far in August.
BTC and ETH in green: historically, Dogecoin tends to follow their trends.
Critical support zone: early August levels still hold firm.
Interpretation: If BTC and ETH extend their positive streak, DOGE could break resistances and aim for the levels prior to the drop in July.
Risks to watch
1. Massive liquidations: High OI in a bear market can accelerate declines.
2. Market sentiment: Macro news or regulations can alter the bullish structure.
3. Altcoins under pressure: If capital flow concentrates on BTC, DOGE could lag behind.
Scenario for traders
Short term: Trade with tight stops and follow the evolution of OI in real time.
Medium term: Watch the correlation with BTC/ETH and potential entries when OI combines with consistent green candles.
Long term (HODL): Maintain moderate positions until a sustained trend is confirmed.
Conclusion
Dogecoin has not lost the interest of major players, and an OI of $3B in the midst of market adjustments is a sign that the 'dog' still has the strength to bite. The rest of August could determine whether DOGE barks... or truly bites.
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