Dogecoin’s open interest continues to decline, sparking a bearish outlook for the foremost meme coin. Based on historical data, the DOGE price is at risk of suffering a further crash thanks to the drop in its open interest.
DOGE Price At Risk As Dogecoin’s Open Interest Slides
The DOGE price is at risk as Dogecoin’s open interest slides. Coinglass data shows that the open interest is currently at $1.57 billion, way below its January 18 peak of $5.42 billion. It is also below the levels recorded in December 2024, when DOGE began to decline from its local high of around $0.46.
The slide in Dogecoin’s open interest indicates that traders are currently on the sidelines and opting against trading or investing in the meme coin, which could further cause the DOGE price to decline. Besides the crash in open interest, other factors also paint a bearish outlook for the foremost meme coin and could spark a price crash.
One is Donald Trump’s reciprocal tariffs, which are threatening to cause a global meltdown, with risk assets like Dogecoin unlikely to be spared. Thanks to this macro development, the DOGE price has already dropped from its weekly high of around $0.20 and is even at risk of entering bear market territory.
Crypto analyst Ali Martinez warned that Dogecoin was at a make-or-break level. He stated that if the DOGE price holds above $0.16, then it could rally to $0.57. However, if it fails to hold the $0.16 support level, then a drop to as low as $0.06 could occur. Crypto analyst Master Kenobi also indicated that a decline below $0.14 could mark the end of DOGE’s bull run.
Bullish Predictions For DOGE
Despite the bearish outlook for the DOGE price, some analysts are still bullish on Dogecoin’s trajectory. Crypto analyst CryptoElites stated that the foremost meme coin has hit the bottom. The analyst predicts that DOGE could hit at least $2 by the end of April or May. His accompanying chart showed that Dogecoin could even rally to as high as $2.7.
Crypto analyst Aliimn also predicted that the DOGE price could rally above $2 as Dogecoin breaks out from a multi-year descending triangle. The analyst stated that this breakout has been confirmed by a surge above the Ichimoku Cloud resistance and a rising RSI. He added that DOGE is also showing strong bullish momentum.
Crypto analyst Trader Tardigrade revealed that Dogecoin is forming an inverse head and shoulders pattern as a bottom. He claimed that both shoulders and the head have formed and that the next step is a breakout above the neckline, which would spark a rally to $0.2.
At the time of writing, the DOGE price is trading at around $0.16, down over 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image from iStock, chart from Tradingview.com
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