- In January, dogecoin open interest slid from $1.57B to $5.42B, an indicator that fewer investors are interested in it and the coin could be pressured closer to the firesale.
- DOGE needs to hold support of $0.16; failing to do so may see it drop to $0.06 or rally to $0.57, analysts warn.
Dogecoin’s open trading activity keeps dropping, which leads investors to worry about its future as a meme digital currency. The market data shows DOGE will probably keep going down if the present movement keeps going.
Coinglass data reveals that the pending derivative stakes for Dogecoin reached $1.57 billion on January 31 yet returned to $5.42 billion on January 18. During December 2024, Dogecoin started falling from $0.46 before the latest drop in open interest.
Falling open interest shows that traders are less interested in DOGE as they wait for better opportunities. Fewer traders entering the market would create more selling and push prices downward further.
Dogecoin Faces Critical Crossroads, Analysts Warn
The market uncertainty about economic factors fuels negative expectations for DOGE. US President Donald Trump’s reciprocal tariff plan creates market fears about an economic slowdown worldwide, which makes DOGE as an investment class very susceptible to risk. DOGE dropped from its weekly peak of $0.20 because of market pressures that made it hover around a crucial support level.
Crypto analyst Ali Martinez highlighted that Dogecoin (DOGE) is at a make-or-break level. If DOGE holds at $0.16 and bounces strongly from this level, a rally to $0.57 could be on the cards. Conversely, If DOGE fails to hold its support, then there will be more pain ahead, and a drop to $0.06 is possible.
Moreover, crypto analyst Master Kenobi emphasized that a bull market for Dogecoin ends when its price declines below $0.14. Crypto analysts are divided on Dogecoin’s (DOGE) future, with some predicting challenging times ahead while others anticipate significant growth.
Currently, DOGE is trading at $0.16 and down 2% in the last 24 hours, mirroring the overall market trend. Moreover, its trading volume is also down by 47%, showing a bearish price trajectory.