Dogecoin’s $1 billion loss means its $0.15 price target is…
  • DOGE price may fall below $0.13 as derivatives liquidity declines
  • The number of coins moved in a week has decreased, indicating that virtual currency operations have ceased.

According to Coinglass, starting April 1st, Dogecoin’s [DOGE] Open interest decreased from $2.11 billion to $780 million. Here, Open Interest (OI) is the value of the contract’s open interest. Metrics increase or decrease based on net positioning.

If OI increases, it means new money is flowing into the market and buyers are active.

A large amount of money leaked from DOGE

However, Dogecoin’s lower OI means there were contracts worth more than $1 billion. closed Just 30 days left. From a trading perspective, this means that sellers were active while most traders were extracting liquidity.

This inefficiency also affects the price of DOGE. According to CoinMarketCap, DOGE was worth $0.13 at the time of writing. This figure suggests a price decline of 28.11% in the past 30 days alone.

DOGE open interest decrease

Source: Coinglass

Memecoin price has risen over the past 24 hours, but given the drop in OI, we don’t see the aggressive decline stopping anytime soon. In this case, DOGE could hold at $0.13 or drop to $0.11 next.

Additionally, the broader market shares similar sentiments. AMBCrypto realized this after evaluating weighted sentiment.

According to data from Santiment, Dogecoin’s weighted sentiment was -0.411. This reading suggests that market participants do not expect a short-term recovery in DOGE.

In addition to this, we considered Funding rate. The funding rate is the cost of holding an open perp position. If funding is positive, it means longs are paying fees to shorts.

I can’t afford $0.15 now.

A negative value means the shorts are paying the longs. At the time of writing, DOGE’s funding rate was positive but trending downward. PERP buyers may find it hard to believe as prices rise and funds fall.

With little to no aggression from the longs, DOGE price may avoid reversing the overhead resistance. Therefore, a rise above $0.15 may not be possible in the coming days.

Dogecoin shows potential for price declineDogecoin shows potential for price decline

Source: Santiment

Additionally, activity is starting to pick up again on the Dogecoin network. On April 25th, the number of active addresses on his network was less than 50,000.

Active addresses indicate number of wallets interact along with the project. At the time of this writing, that number had increased to 67,200. This means that users are now making more transactions on the network.

However, this indicator was nowhere near the levels seen when DOGE changed trades at $0.20. If this indicator stays at this level, DOGE price may rise, but it is almost certain that the uptrend will not continue.

DOGE price is showing bearish signalsDOGE price is showing bearish signals

Source: Santiment

Is your portfolio green? Check out the DOGE Profit Calculator

Furthermore, the daily circulation was 2.54 billion, indicating that Dogecoin usage has fallen off the charts. Therefore, as long as there are fewer coins to move, DOGE can get stuck within a narrow range.

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