Two weeks ago, Dogecoin (DOGE) price was $0.13, driving speculation that the meme coins could be circling back to its yearly high. But in the last seven days, Dogecoin’s ambitions of hitting that value have been waning as its price decreased by 8.86%. 

This shift raises concerns among DOGE investors who had initially thought the uptrend would erase the losses they have endured for months. Contrary to those expectations, this analysis reveals that the cryptocurrency may keep swinging lower before any major breakout.

Dogecoin Investors Ditch the Coin for Now

On Monday, October 7, Dogecoin’s Open Interest was $1.35 billion. Open Interest refers to the total sum of all open positions or contracts in the market. Technically, the OI, as it is commonly called, measures speculative activity. 

When the OI increases, buyers are aggressive and are pumping more money into the contracts. A decrease implies that sellers have the advantage and are increasingly closing existing positions.

Today, DOGE’s OI has plummeted to 801.99 million, indicating that traders removed about 458 million from contracts related to the cryptocurrency within the last 24 hours. From a price perspective, this massive decline suggests that Dogecoin’s price is likely to dump into the underlying support.

Read more: Dogecoin vs. Bitcoin: An Ultimate Comparison

This development contradicts the recent bullish forecast, which saw crypto whales purchase DOGE to prepare for a potential breakout. However, data from IntoTheBlock reveals that things have also changed at that end.

At press time, Dogecoin’s Large Holders Netflow has significantly fallen after rising to an impressive height on October 4. This netflow measures the percentage difference between the value

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Author: Victor Olanrewaju