Can Dogecoin (DOGE) still rebound against the trend? Both price and open interest fall

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In April this year, Dogecoin's open interest (OI) reached an annual high of $12 billion, but has recently fallen sharply to $1.42 billion. With the decline in open interest, DOGE prices fell 20% in a week, raising market concerns about its short-term trend.

Open interest and market sentiment are both weak

Dogecoin's OI has fallen sharply from its highs, especially after the price fell to $0.32, indicating that traders have closed their positions due to weakening optimism. This trend reflects the lack of confidence in the market, and traders have become more cautious about opening new positions. Unless sentiment improves, prices may fall further.

Long-term holders tend to be static, and market activity has declined

According to the MDIA indicator, the average currency age of Dogecoin has risen to 335 days, indicating that holders are more inclined to hold coins for the long term rather than trade. This phenomenon is associated with reduced liquidity and falling demand, which is generally seen as a bearish signal. If MDIA continues to rise, it may mean a lack of new money in the market, consistent with the recent price weakness.

Technical: Key support level lost, recovery faces challenges

Dogecoin has fallen below the key support level of $0.35. The MACD indicator shows that the downtrend is still dominant, although the histogram suggests that the bearish pressure has weakened. If the current trend continues, DOGE may further test the support level of $0.27.

However, if buyers can push the price back above $0.35 and maintain momentum, DOGE is expected to hit the resistance level of $0.48. This requires stronger trading volume and buying pressure, but the market momentum is still insufficient at present.

Dogecoin is at a critical turning point, with low market confidence and reduced trading activity. The future trend may depend on whether buyers can drive the price back above the key support level. If you are a coin holder, do you think Dogecoin can break the current deadlock?

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