Bitcoin

Dogecoin

April

when

The <a href="https://bitcoinist.com/dogecoin-support-at-0-112-0-123/">Dogecoin open interest has seen a massive crash</a> in the last month, leading to concerns about the future prospects of the meme coin. It is now a long way from its March all-time highs and has returned to the low levels of early February. 
<h2 class="p2" id="dogecoin-open-interest-sees-66-5-crash">Dogecoin Open Interest Sees 66.5% Crash</h2> 
In March, the <a href="https://bitcoinist.com/dogecoin-open-interest-500-million/">Dogecoin open interest</a> had risen to a new all-time high of $1.91 billion after a month of steady increase. This was followed by an increase in the <a href="https://bitcoinist.com/bitcoin-dogecoin-top-holder-cardano-ethereum/">DOGE price</a> as investors rushed to join the rally and secure gains. This steady growth would continue into the start of April, but since then, the price has been on a downtrend. 
Data from Coinglass <a href="https://www.coinglass.com/BitcoinOpenInterest" rel="nofollow noopener" target="_blank">shows</a> that on April 1, the total Dogecoin open interest came out to $1.87 billion. But in the space of one week, the open interest had fallen by $600 million. The decline continued through to the end of April and by the end of the month, the open interest was at $763 million. 
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-298026 aligncenter" src="https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot-2024-05-03-at-13.00.11.png?w=640&amp;resize=640%2C223" alt="Dogecoin open interest" width="640" height="223" srcset="https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot-2024-05-03-at-13.00.11.png?w=2846 2846w, https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot-2024-05-03-at-13.00.11.png?w=640&amp;resize=640%2C223 640w, https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot-2024-05-03-at-13.00.11.png?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot-2024-05-03-at-13.00.11.png?w=980 980w, https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot-2024-05-03-at-13.00.11.png?w=1536 1536w, https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot-2024-05-03-at-13.00.11.png?w=2048 2048w, https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot-2024-05-03-at-13.00.11.png?w=750 750w, https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot-2024-05-03-at-13.00.11.png?w=1140 1140w" sizes="(max-width: 640px) 100vw, 640px" data-recalc-dims="1"> 
With the month of May following the bearish trend of April, the decline in the open interest has been constant. At the time of writing, the <a href="https://bitcoinist.com/dogecoin-open-interest-6-month/">total Dogecoin open interest</a> is sitting at $625.7 million, a whopping 66.5% crash from its $1.87 billion level just a month ago. 
The last time the Dogecoin open interest was this low was toward the end of February. However, the open interest is still a long way from its January lows when it was trending below $300 million. At the same time, the <a href="https://bitcoinist.com/crypto-analyst-says-dogecoin-could-rally-2500-presents-possible-targets/">DOGE price</a> is also higher, suggesting the last few months have been quite good for the meme coin. 
<h2 class="p2" id="how-will-doge-price-react">How Will DOGE Price React?</h2> 
The reaction to a sharp drop in open interest has always been the same, ending with the price of the cryptocurrency seeing a decline. Dogecoin has stuck to this trend as its price has dumped almost 50% at the same time as bears continue to exert dominance. 
If the <a href="https://bitcoinist.com/dogecoin-accumulation-zone/">DOGE</a> open interest continues to decline, then investors can expect the price to follow the same path. Such a crash could send the <a href="https://bitcoinist.com/pepe-flip-dogecoin-shiba-inu/">Dogecoin price</a> below the $0.12 support, which could be the start of a downward spiral. 
However, if the open interest does recover, then a reversal in price is expected as well. Mostly, this would depend on how the price of Bitcoin performs from now on, but as interest begins to grow and traders take more positions, it gives room for Dogecoin to grow. 
<img loading="lazy" decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/hq9jDr1D/" alt="Dogecoin price chart from Tradingview.com" width="3286" height="1530">

Dogecoin Open Interest Crashes 66.5% In One Month, What Does This Mean For Price?

Table of Contents

Bitcoinist

Other articles published on May 3, 2024

Dogecoin Price UP: 6% and Still Going?

Chronicle Oracles Arrive on zkSync

VT Markets Boosts Crypto Visibility with Exclusive Events at Monaco E-Prix: Impact on Bitcoin (BT...

Bitcoin Price Alert: Key Levels to Watch Amid Market Flux

How Is the Crypto Market Performing Today?

FTX Fallout: Gruhn’s Titanic Splurge, Salame’s Surrender

Join our free newsletter for daily crypto updates!