Dogecoins value drops below crucial support level as open interest weakens
In recent days, Dogecoin’s valuation has been in a state of stagnation, with recovery efforts proving unsuccessful. The cryptocurrency **DOGE** has seen its value decrease to **$0.1242**, which is over **42% lower** than its peak value this year, indicating a significant downturn in the market.
While Dogecoin struggles, the meme cryptocurrency sector exhibits a contrasting trend. **MOTHER Iggy**, linked to the artist Iggy Azalea, witnessed an **18% surge** on Wednesday, marking a **75% recovery** from its weekly low. Similarly, **Hoppy**, a newer entrant in the meme coin arena, has experienced an astronomical **3,600% rise** from its May nadir, and **Doland Tremp** has seen a **90% increase** in recent days.
The focus of day traders on emerging meme coins with robust performances since 2023 could explain Dogecoin’s lackluster showing. Tokens such as **Bonk**, **Pepe**, and **Dogwifhat (WIF)** have eclipsed traditional cryptocurrencies like **Bitcoin**, **Ethereum**, and **Solana** during this time frame.
Market data indicates a waning interest in Dogecoin, with its 24-hour trading volume consistently falling below **$1 billion**—a modest sum compared to other meme coins. For instance, **Pepe**’s trading volume exceeded **$1 billion** according to CoinGecko.
A similar trend is observable in the futures market, where Dogecoin’s open interest has been declining. It reached a high of over **$1.9 billion** in March but has since dropped to **$578 million**, with the majority of this interest originating from exchanges like **Binance**, **Bybit**, and **Bitget**.
**Dogecoin Open Interest**
**Dogecoin Price Chart**
Technically, Dogecoin’s price has consistently been below the pivotal **200-day and 50-day Exponential Moving Averages (EMA)**, signaling bearish momentum. This pattern is expected to deteriorate further with the anticipated formation of a **death cross**, typically one of the most negative indicators in trading.
Currently, Dogecoin is at a critical support level, corresponding to the lowest price point on **May 1st** and the neckline of a double-top pattern. This suggests a potential further decline, possibly reaching the psychological threshold of **$0.10**.
