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Dogecoin’s open interest is currently in the spotlight, with this key metric reflecting the level of interest that the leading meme coin is experiencing right now. This analysis arises as DOGE continues to face challenges beneath the psychological $0.2 barrier, signaling a pessimistic outlook for the meme currency.
Dogecoin Open Interest Averages $2 Billion In June
According to Coinglass data, Dogecoin’s open interest (OI) has remained around $2 billion since the beginning of this month. This indicates a decrease from the open interest observed in May. DOGE’s OI peaked at $3.07 billion on May 11 as the meme coin’s price soared to $0.25.
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This decline in Dogecoin open interest can be linked to the downturn in DOGE’s value since then. The meme currency began the month below the psychological $0.2 threshold, generating bearish sentiments. Open interest pertains to the level of engagement in the derivatives market for a specific asset. Consequently, a decline in this metric generally indicates bearish conditions.
Nevertheless, it is essential to note that the Dogecoin open interest remains above the monthly average recorded in March and April, during the timeframe when Trump tariffs caused a decline in crypto assets. At that time, DOGE plummeted to a low of $0.14 and was at risk of forfeiting its bullish market structure.
Crypto analyst BitMonty anticipates DOGE to rebound amidst this decrease in Dogecoin open interest. In an X post, he mentioned that the meme coin is testing the 0.618 Fib retracement and the lower boundary of a descending wedge. He added that this area marks a high confluence bounce zone, and reversal indicators may trigger a breakout movement soon. BitMonty predicts DOGE could surge to as high as $0.26420 on this rebound.
DOGE Preparing for a Bullish Reversal
In a separate X post, crypto analyst Trader Tardigrade suggested that the Dogecoin price may be gearing up for a bullish reversal. He observed that DOGE is reverting to the previous swing low, while the RSI indicates a higher low. The analyst pointed out that this could lead to a bullish divergence, signaling diminished selling momentum and initial signs of a possible upward reversal.
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In another X post, Trader Tardigrade expressed that Dogecoin is likely to see a notable increase before undergoing a prolonged falling wedge pullback. Interestingly, his accompanying chart indicated that the meme coin might rally to as much as $30. Nevertheless, this price increase is not anticipated to occur within just this market cycle, with the chart projecting 2029 as the target year to achieve this price level.
At the time of writing, the Dogecoin price is approximately $0.18, down over 3% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com
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