- Dogecoin’s open interest dropped by $3B since January, now at $1.91B, as derivatives volume fell 30% to $3.71B.
- Analysts warn losing $0.20 support could end DOGE’s bullish cycle amid declining trader activity and whale inactivity.
Dogecoin’s open interest has dropped by over $3 billion since January, now at $1.91 billion, according to data from Coinglass.
This metric, which tracks the total value of outstanding derivatives contracts, reflects reduced trader engagement with the meme coin.
Derivatives volume also fell by nearly 30%, currently at $3.71 billion, reinforcing bearish sentiment.
A broader market decline has pushed Dogecoin toward the $0.20 price level. Analysts like Ali Martinez warn that losing this support could signal the end of its bullish cycle. Declining open interest and trading volume suggest traders are exiting positions amid uncertainty.
Whales bought the dip, accumulating more than 530 million #Dogecoin $DOGE in the last 72 hours! pic.twitter.com/0cRGqxLoXw
— Ali (@ali_charts) February 27, 2025
Network activity metrics show new address creation dropped from 1.29 million in November to 30,815, while active addresses fell from 2.66 million to 130,282. Large DOGE holders, or “whales,” have also stayed inactive, potentially worsening selling pressure due to their historical influence on price movements.
ETHNews analysts remain optimistic. Trader Tardigrade argues Dogecoin’s price pattern mirrors its 2017 rally and predicts a rise above $1.7 after consolidation.
#Dogecoin has formed a Bullish Divergence on RSI 🔥$Doge RSI Oversold area was also reached. pic.twitter.com/vwK2TAJrKX
— Trader Tardigrade (@TATrader_Alan) February 27, 2025
DOGECAPITAL similarly projects a potential $1.7 target, citing historical cycles like those in 2017 and 2021. While bearish signals dominate short-term forecasts, these outlooks suggest possible gains if markets stabilize.
Currently, Dogecoin (DOGE) is trading at $0.20723 USD, marking a 1.98% increase (+$0.00402) in the last 24 hours. Despite this short-term positive move, DOGE has seen a significant drop of 18.64% over the past week and has fallen 37.93% in the last month. However, the long-term perspective reveals a 103.74% increase over the last six months and a 112.34% rise year-over-year, showcasing its ability to rally in the past year.
Recently, Dogecoin experienced a 15% drop within two days, dropping below the critical 200-day Simple Moving Average (SMA) at $0.24 for the first time since October 2024. This indicates that selling pressure has intensified, and the price is currently testing new support levels.
Technical Indicators and Market Sentiment
Dogecoin has been facing downward momentum, and its current price is hovering near support levels around $0.19 – $0.20.
A potential bounce from this zone could trigger a short-term recovery, possibly targeting the $0.24 – $0.26 range. The RSI is approaching oversold conditions, signaling that the market may be due for a correction if buying pressure returns.
