Important points
- DOGE is down less than 1% and is trading above $0.15.
- The DOGE derivatives market is showing signs of recovery with open interest increasing to $1.66 billion.
Dogecoin derivatives data shows signs of recovery
Doge, the native coin of the Dogecoin ecosystem, continues to languish this week after losing less than 1% of its value in the past 24 hours. The leading meme coin is currently trading at $0.157 and could record further losses in the near term.
Dogecoin has lost 37% of its value since the October 10 flash crash, which liquidated more than $19 billion in crypto assets in a single day.
This decline reflects the bearish sentiment in the crypto market as a whole, as the uncertainty of further Fed interest rate cuts is causing capital flight in the crypto market. Fed Chairman Jerome Powell said at the last FOMC meeting that a rate cut in December was not guaranteed, which surprised investors and fueled risk-off sentiment.
Despite DOGE’s poor performance, its derivatives market has shown promise in recent days. Dogecoin futures open interest (OI) has been stable over the past few days. Data obtained from Coinglass shows that traders are slowly regaining confidence in Dogecoin’s ability to sustain the short-term recovery.
Coinglass added that Dogecoin’s OI-weighted funding rate increased from -0.0083% on Tuesday to 0.0076% on Wednesday. This surge is occurring as traders accumulate long positions.
DOGE remains bearish as market volatility continues
The DOGE/USD 4-hour chart is bearish and efficient as Dogecoin has lost 10% of its value in the past 24 hours. The bearish performance comes as the broader crypto market continues to underperform.
The Relative Strength Index (RSI) on the 4-hour chart is at 48, which risks extending the decline towards oversold territory. If the decline continues, DOGE could escalate the downtrend below $0.1500.
Dogecoin is currently trading below its 50-day exponential moving average (EMA) of $0.1893, 100-day EMA of $0.2024, and 200-day EMA of $0.2090, which could provide strong resistance in the short term.
If this bearish trend continues, DOGE could fall below the $0.15 level and retest the support at $0.1424, which was last tested in June.
