The Dogecoin open interest rose to a brand new all-time excessive earlier in March, and whereas there was a small retracement, the open curiosity has continued to take care of very excessive report ranges since then. Given this steady excessive degree, it might level to the place the value of the meme coin is headed subsequent utilizing historic knowledge.
Dogecoin Open Curiosity Maintains Excessive Stage
Open interest is a measure of the overall variety of futures or choices contracts of a selected coin available in the market at a give time. It might probably assist to inform how a lot cash is flowing into that specific asset, thereby revealing if there a excessive or love curiosity within the asset.
On Dogecoin’s half, its whole open curiosity has been rising over the previous couple of months, particularly because the crypto market recovered, as proven by data from Coinglass. A pure consequence of this was that the value was additionally climbing similtaneously the open curiosity and thus, there’s a excessive correlation between open curiosity and worth.
The DOGE open curiosity hit a new all-time high of $1.47 billion on March 5, and the meme coin has not appeared again since. Regardless of a small decline within the following days, the open curiosity is rising as soon as once more, reaching $.144 billion on March 14 and taking the value with it.
Whereas the rise in open curiosity does level to numerous bullishness available in the market, historic efficiency throughout occasions like these additionally requires warning. Looking at what occurred the earlier occasions that the Dogecoin open curiosity hit new all-time highs might give an thought of the place the value is headed subsequent.
The place Can DOGE Go From Right here?
Over time, there have been numerous factors at which the Dogecoin open interest has reached new all-time highs and a pattern has emerged, in a way of talking. Trying way back to 2021 when the open curiosity hit ATHs a number of time, this pattern performs out equally.
A sustained rise till a brand new all-time excessive is reached, with the value rising alongside, after which adopted by a crash in open curiosity, in addition to worth. This was the case in September 2021 when the open curiosity reached a brand new all-time excessive after which once more in November 2021 when it clocked one other ATH.
Transferring ahead, the identical pattern is seen in October 2021 when the DOGE open rose near its earlier all-time excessive, however ended the identical approach because the earlier ones – with a crash. These crashes virtually at all times have an effect on the DOGE worth as nicely, inflicting it to drop to the degrees earlier than the surge in open interest.
If this sample holds this time round, then a crash could be forward for the Dogecoin open curiosity and the DOGE price by extension. A probable state of affairs is a 20% drop that might ship the DOGE worth again towards $0.15 earlier than the crypto market picks up steam as soon as once more.
DOGE bulls maintain up worth | Supply: DOGEUSDT on Tradingview.com
Featured picture from Decrypt, chart from Tradingview.com
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