Dogecoin’s open interest has crashed to December 2024 levels, providing a bearish outlook for the foremost meme coin. This development has raised concerns that DOGE could suffer a price crash like it did back in December last year.
Dogecoin’s Open Interest Drops To December 2024 Levels
Coinglass data shows Dogecoin’s open interest has dropped to its December 2024 levels. DOGE’s open interest currently stands at $2.33 billion. The derivatives trading volume has also crashed by over 34%, dropping to $1.97 billion. This development is significant as the Dogecoin price crashed back in December 2024 when similar figures were recorded.
Back then, the Dogecoin price crashed from a local high of around $0.46 to as low as $0.31, canceling a significant portion of the gains the meme coin enjoyed throughout the year. Now, DOGE is at risk of a significant price crash again, as the open interest indicates a bearish sentiment toward the meme coin.
It is worth mentioning that the meme coin’s price has already suffered a crash of over 22% this month, having lost the crucial support at $0.3. However, this price crash looks unlikely to be over based on the crash in Dogecoin’s open interest. Crypto analyst Melika Trader also predicted that the foremost meme coin could still drop to as low as $0.176.
The analyst highlighted a double-top pattern that had formed for the Dogecoin price. Based on this, he predicted that DOGE could first drop to the temporary support zone at $0.22, then record a relief bounce before it corrects to the support level between $0.176 and $0.18. Crypto analyst UB also warned that DOGE is at risk of a massive price decline if it loses the support level at $0.24.
DOGE Whales Staying On The Sidelines
Crypto analyst Ali Martinez revealed that Dogecoin whales are choosing to stay on the sidelines during this recent volatility. According to him, these investors have shown little to no significant buying or selling activity. Although this is neither bearish nor bullish for the meme coin, it could indicate that these whales anticipate a further decline before the meme coin rebounds.
Meanwhile, amid this bearish outlook for the Dogecoin price, crypto analyst Trader Tardigrade has assured that DOGE’s long-term outlook is still bullish. In an X post, he stated that Dogecoin’s weekly Stochastic Relative Strength Index (RSI) signals crossover in the oversold zone. He added that the macro channel sets DOGE’s target above $1.5. The analyst also previously revealed that the meme coin was in oversold territory in the 4-hour timeframe and that a round was imminent.
At the time of writing, the DOGE price is trading at around $0.25, up in the last 24 hours, according to data from CoinMarketCap.
