Key takeaways
- DOGE fell by less than 1% and is trading above $0.15.
- Dogecoin’s derivatives market shows signs of recovery as Open Interest rises to $1.66 billion.
Dogecoin derivatives data show signs of recovery
DOGE, the native currency of the Dogecoin ecosystem, continued to underperform this week, slipping by under 1% in the past 24 hours. The leading memecoin is currently trading at $0.157 and could face further short-term declines.
Since the flash crash on October 10 that liquidated more than $19 billion in crypto assets in a single day, Dogecoin has lost roughly 37% of its value.
That sell-off reflects broad negative sentiment across the crypto market and uncertainty about whether a fresh Fed rate cut will prompt a capital reallocation away from digital assets. Fed Chair Jerome Powell said during the latest FOMC meeting that a rate cut in December is not guaranteed, unnerving investors and dampening risk appetite.
Despite DOGE’s weak price action, its derivatives market has shown potential in recent days. Open Interest (OI) in Dogecoin futures has stabilized, and data from Coinglass indicate traders are gradually regaining confidence in DOGE’s ability to mount a short-term recovery.
Coinglass also reported that the OI-weighted funding rate for Dogecoin rose to 0.0076% on Wednesday from -0.0083% on Tuesday. This shift suggests traders are increasingly accumulating long positions.
DOGE remains bearish as market volatility continues
The 4-hour DOGE/USD chart looks bearish and decisive, with Dogecoin losing about 10% over the past day. The pullback comes amid a broader period of weak performance across the crypto market.
The 4-hour Relative Strength Index (RSI) sits around 48 and risks sliding further toward the oversold area. If selling pressure persists, DOGE could extend its downtrend below $0.1500.
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 EMAs may act as strong short-term resistance levels.
If the bearish trend continues, DOGE could dip below $0.15 and retest the $0.1424 support level that was last tested in June.