Key Points
- DOGE is down by less than 1% and trading above $0.15.
- The DOGE derivatives market shows signs of recovery, with Open Interest climbing to $1.66 billion.
Dogecoin Derivatives Data Shows Signs of Recovery
Dogecoin (DOGE), the native coin of the Dogecoin ecosystem, continues its struggle this week as it has lost less than 1% of its value in the past 24 hours. Currently trading at $0.157, it may face further short-term losses.
Since the flash crash on October 10, which wiped out over $19 billion in cryptocurrency assets in a single day, Dogecoin has seen a 37% drop in value.
This decline reflects the bearish sentiment prevailing in the broader crypto market, as uncertainty around the Federal Reserve’s potential interest rate cuts has spurred capital flight from the cryptocurrency sector. Fed Chairman Jerome Powell indicated in the recent FOMC meeting that a rate cut in December was not guaranteed, unsettling investors and dampening risk sentiment.
Despite DOGE’s poor performance, its derivatives market has shown promise in recent days. Open Interest (OI) for Dogecoin futures has stabilized, with data from Coinglass indicating that traders are slowly regaining confidence in DOGE’s ability to sustain a short-term recovery.
Coinglass further reported that the weighted funding rate for DOGE’s OI rose to 0.0076% on Wednesday, up from -0.0083% on Tuesday. This increase comes as traders are building more long positions.
DOGE Remains Bearish Amid Ongoing Market Volatility
The 4-hour DOGE/USD chart exhibits a bearish outlook, as Dogecoin has lost 10% of its value in the last 24 hours. This downward trend is occurring while the overall crypto market continues to underperform.
The Relative Strength Index (RSI) on the 4-hour chart sits at 48, indicating a risk of extended declines into oversold territory. Continued selling pressure could push DOGE below the $0.1500 level.
Currently, Dogecoin is trading below the 50-day Exponential Moving Average (EMA) at $0.1893, the 100-day EMA at $0.2024, and the 200-day EMA at $0.2090—these levels could pose significant resistance in the short term.
If the bearish trend persists, DOGE may test support levels below $0.15, revisiting the $0.1424 support last seen in June.
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