Over the past week, there has been a sharp 24% drop in Dogecoin’s open interest, which is a key sign of investor activity. This drop in price could have significant impacts on the future of Dogecoin.
According to Coinglass, the amount of open interest in Dogecoin dropped from $707 million on July 18 to $420 million by the beginning of August. Following a market crash that affected cryptocurrency and pushed DOGE below $0.09, such a significant drop happened.
Dogecoin Open Interest Drops
The drop in open accounts shows that people are losing interest in Dogecoin, which is typical of the market as a whole. Even though this isn’t the lowest open interest for DOGE this year, the fact that it happened now, when the market is as it is, makes it interesting.
DOGE has lost most of the gains it made last year and is now back to where it was in February 2024.In this current drop, the link between open interest and DOGE price is clear. The price of DOGE dropped by about 40% as open interest dropped by 24%.
DOGE open interest peaked at $2.21 billion in March 2024, and its price hit a yearly high. This trend is supported by historical statistics. After that, the price dropped from $0.22 to $0.18 because of a drop in open interest.
A rise in open interest would be a good sign for DOGE recovery. If open interest levels off, DOGE could stay around $0.08. Dogecoin is currently going down, but a market-wide recovery, especially one led by a rise in Bitcoin’s price, could turn things around.
