Dogecoin Price Outlook: Open Interest Drops by $458M – Is DOGE’s Bullish Momentum Over?
The Dogecoin price has recovered by 2% in the past 24 hours, returning to $0.1103 as the Crypto Market loses 1.5% today.
DOGE is now up by 3.5% in a week and by 12% in the past month, with the Meme Token outperforming several other top-100 coins over these timeframes (including BTC).
But while DOGE is also up by a very healthy 87% in the past year, there have been signs that demand is waning, with its open interest falling to around $500 million over the past couple of weeks.
However, its falls are in line with what we can see with other major tokens, while other Data suggests that the Dogecoin price is likely to regain its recent momentum soon.
If you look at recent data from Santiment, we do see a fairly sharp decline in Dogecoin’s open interest, which tracks the total volume (in USD) of futures Contracts for the meme token.
From a healthy $10.8 billion in the first half of June, it has since declined to $801 million, having lost over $458 million in the past day.
This might seem alarming at first glance, but it’s pretty much the same for Shiba Inu (SHIB), for instance, or even for BTC, which is also down in terms of open interest since June and July.
Yet there is positive data: Dogecoin’s funding rate has risen from -0.0016% on October 2 to 0.0108% today.
This is a sign of growing demand, with DOGE’s chart and indicators also suggesting a Growth in momentum.
For instance, the alt’s relative strength index (purple) rising from around 40 this morning to over 60 as of writing.
DOGE’s 30-period moving average (orange) is also on the brink of climbing over the 200-period average (blue).
Such a turnaround often signals an incoming breakout, and given that DOGE had entered an oversold position in recent days and weeks, a recovery rally is certainly due.
Turning to the bigger picture, DOGE is likely to rise in parallel with the wider market, which has shown signs of recovery in recent days after a choppy period last week.
Assuming (and hoping) that tensions between Israel and Iran do not escalate, the market is likely to continue its recently commenced upward trend.
We may also see Bet-second-straight-50-bps-fed-rate-cut-november-2024-09-27/">additional rate cuts from the Fed in the coming weeks, which could push bullishness further.
In such a context, the Dogecoin price could hit $0.15 by the end of October, and $0.30 by the end of the year.
New Presale Tokens Bring Strong Potential
For traders looking to move beyond established meme tokens such as DOGE, there are numerous promising new alternatives to consider.
This would include recent trailblazers such as MOODENG and SIGMA, but it would also include certain presale tokens that have been gaining momentum recently.
One of these is Flockerz (FLOCK), an ERC-20 token that has raised over $500,000 in its recently launched sale.
Flockerz already has the distinction of being the first vote-to-earn token in the market, through which holders can earn Rewards for participating in Governance votes.
Given that all governance decisions will be put to the community, Flockerz could therefore be a very lucrative Coin for traders.
This is particularly the case when holders will be able to stake the token, earning a passive income on top of any governance Rewards.
FLOCK comes with a max supply of 12 billion, with 20% of this going to the sale, 25% to Staking, and another 25% to governance rewards.
Investors can join FLOCK’s presale by going to its official website, where they buy the coin at a price of $0.005724.
The presale will have 50 stages, so there are a few more price rises in store before it reaches a conclusion.
But once it does, the coin’s early momentum suggests that it could have one of the biggest new listings of the year.
