The crypto market is back on the downside and so is the Dogecoin futures market as its open interest volume over the last day shows a notable decline, according to data from CoinGlass.
The data shows that Dogecoin has seen its futures open interest decline by 5.55% over the last day. This decline shows a massive slowdown as traders appear to be taking caution amid the negative market trend.
9,820,000,000 DOGE committed amid market slump
Following the plunge in the metric, the total number of active futures contracts involving Dogecoin that have not been settled has dropped significantly to 9.82 billion DOGE worth approximately $1.37 billion per DOGE’s current trading price.
Although the data shows Dogecoin’s derivatives trend over the last day, the DOGE open interest volume has remained significantly low since the past days compared to levels seen before the huge Oct. 10 market crash.
The negative trend shows that traders are becoming less willing to commit their holdings to its futures contract amid rising uncertainty spurred by the reoccurring market correction.
Nonetheless, what’s interesting is that the DOGE open interest volume saw a mild increase in the last hour, suggesting a decent shift in sentiment as interest might be returning to the Dogecoin derivatives market.
What's next for DOGE price?
It is important to note that the decline in Dogecoin’s open interest has coincided with the unexpected reversal witnessed in the price of Dogecoin.
The downtrend, which is witnessed across the broad crypto market, has seen prices of altcoins and meme tokens mirror the broader market downturn led by Bitcoin and Ethereum.
As such, Dogecoin has declined by 3.14% over the last day, and its price is trading at $0.1395 over the last day.
The decline in its futures activity coinciding with a decline in its trading price suggests that traders are increasingly exiting leveraged positions, providing no positive outlook for the asset in the near term.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team