Dogecoin’s open interest has plummeted to $1.42 billion, a stark contrast from April’s peak of $12 billion. A continued decline in OI, especially during DOGE’s recent price drop to $0.32, indicates that traders are unwinding their positions due to reduced optimism.
Source: Santiment
This bearish trend in OI often indicates declining confidence in the near-term price recovery.
Combined with a 20% decline in DOGE’s price over the past week, the shrinking OI suggests traders are cautious about opening new positions, signaling potential for further correction unless market sentiment reverses.
MDIA signals stagnation and cautious sentiment
The MDIA indicates that Dogecoin holders are increasingly choosing to hold their assets rather than trade them.
MDIA, which tracks the average age of coins on a blockchain, weighted by purchase price, has steadily increased to 335 days. This trend indicates that long-term holders are not actively trading or reallocating their assets, indicating market stagnation.
Source: Santiment
Historically, a rising MDIA has been correlated with reduced liquidity and lower demand, which is often seen as a bearish signal.
If this upward trajectory continues, it underlines a lack of fresh capital or speculative activity in the DOGE market, in line with recent price declines. This supports the narrative of cautious sentiment dominating Dogecoin’s short-term prospects.
Dogecoin is struggling below key support levels as bearish momentum dominates
On the daily chart, Dogecoin is struggling to regain critical support levels after the recent downturn.
The price has fallen below the $0.35 threshold, which previously acted as a significant support level, indicating that bearish momentum continues to dominate.
Source: TradingView
The MACD indicator confirms this bearish outlook. At the time of writing, the MACD line is in negative territory, reflecting downward momentum. The histogram shows waning bearish pressure, but until a clear bullish crossover occurs, recovery prospects remain limited.
