Dogecoin open interest nears historic low: Is this the end of DOGE's 2024 surge?
In April, Dogecoin (DOGE) open interest surged to a yearly high of $12 billion! However, after entering October, this number has fallen sharply. Despite a brief rebound at the beginning of the month, current open interest is about to fall to its lowest point since November 10. This wave of decline is exactly the same as Dogecoin's 20% price slide in the past week, which has caused many investors to begin to doubt Dogecoin's short-term prospects.
Recently, Dogecoin's open interest has plummeted and has now dropped to only $1.42 billion. What is shocking is that this figure is a far cry from the peak of $12 billion in April! This continued downward trend, especially against the backdrop of Dogecoin's price falling to $0.32, reveals the pessimism of traders behind it.
This bearish trend in OI usually indicates that confidence in a short-term price recovery is waning.
Combined with the 20% drop in DOGE prices over the past week, the shrinking OI suggests that traders are cautious about opening new positions, and unless market sentiment reverses, a further pullback is likely.
MDIA says Dogecoin holders are increasingly choosing to hold rather than trade their assets.
Recently, the MDIA index has attracted everyone's attention. It tracks the average age of coins on the blockchain weighted by purchase price, and surprisingly, this number has steadily climbed to 335 days! This reflects an important trend behind it: long-term holders do not seem to be actively trading or reallocating their assets. In other words, the market is in a "sleeping" state.
Historically, rising MDIA is associated with reduced liquidity and falling demand, which is usually seen as a bearish signal.
Dogecoin struggles below key support as bearish momentum dominates
On the daily chart, Dogecoin is struggling to regain key support levels after the recent decline.
The price has fallen below the $0.35 threshold, which was previously an important support level, indicating that bearish momentum continues to dominate.
