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Dogecoin’s open interest is in focus, with this crucial metric highlighting the amount of interest that the top meme coin is getting at the moment. This comes as DOGE continues to struggle below the psychological $0.2 level, providing a bearish outlook for the meme coin.
Dogecoin Open Interest Averages $2 Billion In June
Coinglass data shows that Dogecoin open interest (OI) has been hovering around $2 billion since the start of this month. This represents a drop from the open interest recorded in May. DOGE’s OI had climbed to as high as $3.07 billion on May 11 as the meme coin’s price surged to $0.25.
This drop in Dogecoin open interest can be attributed to the drop in DOGE’s price since then. The meme coin began the month below the psychological $0.2 level, which has sparked bearish sentiments. Open interest refers to the amount of interest in the derivatives market for a particular asset. As such, a drop in this metric is usually bearish.
However, it is worth mentioning that the Dogecoin open interest is still above the monthly average recorded in March and April, during the period when the Trump tariffs caused crypto assets to tumble. Back then, DOGE dropped to as low as $0.14 and was at risk of losing its bull market structure.
Crypto analyst BitMonty expects DOGE to bounce back amid this drop in the Dogecoin open interest. In an X post, he said the meme coin is testing the 0.618 Fib retracement and the lower boundary of a falling wedge. He added that this is a high confluence bounce zone, and reversal signs could spark a breakout move soon. BitMonty predicts that DOGE could rally to as high as $0.26420 on this bounce.
DOGE Setting Up For A Bullish Reversal
In an X post, crypto analyst Trader Tardigrade indicated that the Dogecoin price may be setting up for a bullish reversal. He revealed that DOGE is returning to the previous swing low, while the RSI shows a higher low. The analyst noted that this could lead to a bullish divergence, indicating weakened selling momentum and early signs of a potential reversal to the upside.
In another X post, Trader Tardigrade stated that Dogecoin is expected to experience a significant surge before entering a prolonged falling wedge pullback. Interestingly, his accompanying chart showed that the meme coin could rally to as high as $30. However, this price surge isn’t expected to happen in just this market cycle alone, with the chart highlighting 2029 as the target year to reach this price level.
At the time of writing, the Dogecoin price is trading at around $0.18, down over 3% in the last 24 hours, according to data from CoinMarketCap.
