- DOGE price has stagnated below $0.17 due to declining interest in the derivatives market.
- With reports of trader interest shifting to high-beta meme coins, will interest in DOGE increase?
From May 23 onwards, Bitcoin [BTC] Prices have been quiet but remain above $67,000. With a looming oversupply from the Mt. Gox exchange, some traders are reportedly shifting their focus to meme coins, especially meme coins like Legacy Meme. Dogecoin [DOGE].
According to the Singapore-based crypto trading firm QCP CapitalTraders have shifted their focus to legacy meme coins.
“Traders have shifted their focus to high-beta meme tokens such as Shiba Inu (SHIBA), Dogecoin (DOGE) and Pepe (PEPE), which have recorded double-digit (10-20%) gains and ranked in the top 10 by open interest.”
Spot Check Coin Alize It showed that Pepe [PEPE] and Floki [FLOKI] Open balances have risen over the past 24 hours. However, at the time of writing, Dogecoin’s OI remains negative, down around 5%, which could delay DOGE’s strong recovery in the near term.
Will DOGE get a short-term reprieve?
Source: Coinalyze
For those unfamiliar, the Open Interest (OI) rate tracks open futures contracts and the money flowing in and out of them. An increasing OI indicates bullish sentiment, while a decreasing OI highlights bearish sentiment.
DOGE’s OI has been trending downwards since May 27th and is below $900 million at the time of writing. This decline indicates underlying bearish sentiment on DOGE’s price outlook.
The downward trending spot CVD (cumulative volume delta) has further demonstrated sellers’ market leverage since May 27th.
However, DOGE is heading towards key short-term support near $0.15, and a recovery in short-term demand could push DOGE towards $0.17 or even near-term supply at $0.2.
Source: DOGE/USDT
The RSI (Relative Strength Index) and CMF (Chaikin Money Flow) readings have fallen below their averages, signifying a possible retest of the demand area marked in cyan. If so, a sharp rise in OI would support the rebound reversal scenario outlined above.
However, a drop below $0.15 could drag DOGE down to its multi-month support at $0.13.
