Doge Open Interest Dives, Then Moonbound Malarkey

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Dogecoin’s open interest has tumbled back to the murky October 2024 depths, like a curious creature slipping into a cupboard full of shadowy numbers. All at once the market tiptoes around the corner, whispering that perhaps history might like to put on a similar show, with a rocket tucked under its sleeve and a grin that says, “Oh, you fancy a bounce?”

Dogecoin Open Interest Falls To October 2024 Levels

Dogecoin’s open interest has fallen below $1 billion, down over 16%, according to Coinglass data. The last time it dropped to these depths was October 2024, just before it pirouetted into an uptrend which led to a high of $4.45 billion in December 2024. October 2024 also marked the bottom for the DOGE price, as it rose from around $0.155 to as high as $0.46.

Dogecoin notably rose back then, partly thanks to Donald Trump’s presidential victory and Elon Musk’s mischievous bluster, including a government agency named after DOGE-the Department of Government Efficiency. Add a dash of Fed rate-cut magic, and the meme coin found itself wearing a grin as wide as a candy shop window.

It remains to be seen whether Dogecoin can conjure such a price surge this time, given that open interest has dropped to October 2024 levels. The current macro mood is a little different, with the Fed playing a hawkish tune and unlikely to loosen its grip until at least June. Yet Musk, ever the lemon-squeezer of surprises, recently mentioned Dogecoin, hinting they could send the meme coin to the moon next year.

Meanwhile, crypto traders on Binance look to be positioning for a price surge in hopes that this might be the bottom for Dogecoin. The current long/short ratio is 2, suggesting most traders are long. However, DOGE’s long/short ratio across all exchanges is still below 1, indicating that most crypto traders are still bearish and shorting the meme coin.

DOGE Still Risks Dropping To $0.054

Crypto analyst Ali Martinez has indicated that Dogecoin could still drop to as low as $0.054. In an X post, he stated that this is the level he is looking at for a potential bounce. However, crypto analyst Mikybull Crypto suggested that the leading meme coin may not drop to that level, as DOGE’s RSI is currently at a historical level that has acted as support in past cycles. As such, there is the possibility that it could bounce from here.

It is worth noting that Dogecoin has seen a surge in metrics, including derivatives trading volume, which has increased by more than 100% to $6.5 billion. Options trading volume and open interest have also surged by 381% and 135%, respectively, indicating that crypto traders are actively trading the meme coin.

At the time of writing, the Dogecoin price is trading at around $0.09075, down over 11% in the last 24 hours, according to data from CoinMarketCap.

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2026-02-06 20:21