With the market recovery, open interest in major assets has been rising, but it seems Dogecoin is not following this trend. The meme coin has remained muted with a failure to move like other large caps such as Bitcoin and Solana. Naturally, the direction of open interest can have an impact on the performance of Dogecoin’s price. So, what could this muted open interest mean for the meme coin’s price going forward?
Dogecoin Open Interest Fails To Move
According to from the Coinglass website, the once again. On Thursday, the Dogecoin open interest was $493.97 million, which is a long way from its all-time high. This comes even as the meme coin’s open interest surged 6.9% in the 24-hour period, with notable jumps across crypto exchange such as OKX and Bitget. Despite this increase, the Dogecoin open interest is still firmly below its August highs. The open interest started out in August above $618 million. However, since then, it has remained muted, suggesting that crypto traders have turned their attention elsewhere.
Why This Decline Could Be Good For DOGE
The open interest gives the total of the open options or futures contracts in the market for a particular digital asset. Basically, it helps investors to tell if traders are betting heavily on the recovery or decline of a cryptocurrency or not.
Given Dogecoin’s data, it shows that traders are not exactly focused on the meme coin as they used to be. However, this is not always a bad thing, as periods of low open interest have often marked market bottoms. The low open interest usually gives investors a good time to enter into the coin, as the price often declines with the open interest. As the Bitcoin price recovers, it is expected that the Dogecoin price will follow, and when the open interest begins to recover, the DOGE price is expected to grow rapidly with it.
If the same scenario plays out here, then the DOGE price could double once more. This would put the price firmly above the $0.2 level, especially with a bull run expected in the last quarter of the year.
