Key takeaways
- DOGE has fallen just under 1% and is trading above $0.15.
- Derivatives markets for DOGE show signs of recovery, with open interest rising to $1.66 billion.
Dogecoin derivatives show signs of recovery
DOGE, the native coin of the Dogecoin ecosystem, has continued to underperform this week, losing just under 1% of its value over the past 24 hours. The leading memecoin is currently trading at $0.157 and could face further short-term downside pressure.
Following the flash crash on October 10 that wiped out more than $19 billion in crypto value in a single day, Dogecoin has declined roughly 37% from its prior levels.
The sell-off reflects bearish sentiment across broader crypto markets and uncertainty around whether the Federal Reserve’s next rate cut could trigger capital outflows from digital asset markets. Fed Chair Jerome Powell’s comment at the last FOMC meeting that a December rate cut was not guaranteed rattled investors and reduced risk appetite.
Despite DOGE’s weak price action, its derivatives markets have shown encouraging signs in recent days. Open interest (OI) in Dogecoin futures has stabilized, suggesting traders are gradually rebuilding confidence in DOGE’s ability to sustain a short-term rebound.
Data from Coinglass indicates that the OI-weighted funding rate for Dogecoin moved up to 0.0076% on Wednesday from -0.0083% on Tuesday. The increase coincides with a rising number of traders taking long positions.
DOGE remains bearish as market volatility persists
The DOGE/USD four-hour chart presents a bearish outlook, with Dogecoin losing about 10% of its value over the past 24 hours. These downside moves occur as the broader crypto market continues to underperform.
The Relative Strength Index (RSI) on the four-hour chart sits near 48 and risks slipping further toward oversold territory. Should selling pressure persist, DOGE could breach the $0.1500 level and extend the downtrend.
Dogecoin is trading below its 50-day exponential moving average (EMA) at $0.1893, the 100-day EMA at $0.2024 and the 200-day EMA at $0.2090, which may act as strong resistance in the near term.
If the bearish trend continues, DOGE may drop below $0.15 and retest support around $0.1424, a level last tested in June.