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The Dogecoin (DOGE) price has reversed its growth from earlier in the week, when it traded at a high of $0.1041. Despite the ongoing drawdown, the digital currency has a proven uptick in open interest on select crypto trading platforms. This shift can help uplift the price of DOGE in the short term.
Dogecoin open interest shifts
Per data from CryptoQuant Analyst CW, net long positions and open interest on DOGE are showing an upward trend. In his analysis expectations are beginning, to rise, with trading demand also increasing.
This outlook was further showcased with the more than 12% surge in Dogecoin open interest on the Bybit exchange. Within a 24-hour period, more than 1.1 billion DOGE had been committed to the futures market, a trend that is beginning to show on rival platforms.
The Dogecoin price outlook is notably at a make-or-break level, with inconsistencies in open interest and whale action, making the $0.10 level a major one to watch.
The DOGE price has broken this level as a key resistance zone many times in the past week; however, failure to flip it as a support signals market weakness.
As of writing time, the asset is now priced at $0.0926, down by 3.31% in the past 24 hours.
DOGE liquidity source drying up
The Dogecoin price breakout is heavily reliant on its unique liquidity sources. As of now, the obvious sources of capital into the DOGE ecosystem remain the ETF and futures markets.
The Dogecoin ETF products in the United States are currently underperforming, with $0 in inflows recorded in the past 24 hours. While the outflow streak remains limited, it is generally underperforming other altcoins like Solana and XRP.
With the futures market proven to be too volatile to back price stability, DOGE’s recovery is not dependent on its correlation with the broader market — specifically Bitcoin.
Dan Burgin
Vladislav Sopov
