Dogecoin’s open interest has plummeted to $1.42 billion, a stark contrast to its April peak of $12 billion. A sustained drop in OI, particularly during DOGE’s recent price decline to $0.32, points to traders unwinding positions amid reduced optimism.
Source: Santiment
This bearish trend in OI often indicates waning confidence in short-term price recovery.
Coupled with a 20% drop in DOGE’s price over the past week, the shrinking OI suggests traders are cautious about opening new positions, signaling potential for further correction unless market sentiment reverses.
MDIA signals stagnation and cautious sentiment
The MDIA indicates that Dogecoin holders are increasingly opting to hold rather than trade their assets.
MDIA, which tracks the average age of coins on a blockchain weighted by purchase price, has steadily risen to 335 days. This trend suggests long-term holders are not actively trading or reallocating their assets, pointing to stagnation within the market.
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Author: Samantha LKM
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