Dogecoin price has recovered 2% over the past 24 hours, returning to $0.1103 as the crypto market lost 1.5% today. DOGE is now up 3.5% in a week and 12% over the past month, with the meme token outperforming several other coins in the top 100 over this time frame (including BTC).

But while DOGE has also grown a whopping 87% over the past year, there have been signs that demand is waning, with open interest dropping to around $500 million in the past few weeks.

However, its decline is also in line with what we can see in other major coins, while other data suggests that Dogecoin price is likely to regain its recent bullish momentum soon.

Dogecoin Price Outlook: Open Interest Drops by $458 Million – Is DOGE’s Bullish Momentum Over?

If you look at recent data from Santiment, we see a pretty sharp drop in Dogecoin open interest, which tracks the total volume (in USD) of futures contracts for the meme token.

From $10.8 billion in the first half of June, the figure has dropped to $801 million, losing more than $458 million in the past day.

At first glance, this may seem alarming, but it's also quite similar to Shiba Inu (SHIB), for example, or even BTC, which has also seen a decline in open interest since June and July.

There is still positive data, however: Dogecoin's funding rate has increased from -0.0016% on October 2 to 0.0108% today.

This is a sign that demand is increasing, DOGE's chart and indicators also show growth momentum.

For example, the alt relative strength index (purple) has increased from around 40 this morning to over 60 at the time of writing.

DOGE's 30-period moving average (orange) is also on the verge of crossing above its 200-period moving average (blue).

Such a change usually signals an upcoming breakout and since DOGE has been in an oversold position in recent days and weeks, a recovery is certain to follow.

Looking at the big picture, DOGE is likely to rise in tandem with the broader market, which has shown signs of recovery in recent days after a volatile period last week.

Assuming (and hoping) that tensions between Israel and Iran do not escalate, the market is likely to continue the uptrend that began recently.

We could also see the Fed continue to cut interest rates in the coming weeks, which could fuel the bullish trend further.

In such a scenario, Dogecoin price could reach $0.15 by the end of October and $0.30 by the end of the year.

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