Key takeaways
- DOGE is down by less than 1% and is trading above $0.15.
- DOGE’s derivatives market shows signs of recovery as Open Interest rises to $1.66 billion.
Dogecoin’s derivatives data shows signs of recovery
DOGE, the native coin of the Dogecoin ecosystem, continues its poor performance this week after losing less than 1% of its value in the last 24 hours. The leading memecoin is currently trading at $0.157 and could record further losses in the near term.
Since the October 10 flash crash, which liquidated over $19 billion in crypto assets in a single day, Dogecoin has lost 37% of its value.
The selloff reflects the bearish sentiment in the broader crypto market, with uncertainty of another Fed rate cut causing capital flight in the cryptocurrency market. Fed Chair Jerome Powell said during the last FOMC meeting that a December rate cut was not guaranteed, which spooked investors and fueled risk-off sentiment.
Despite DOGE’s poor performance, its derivative market has shown promise in recent days. The Dogecoin futures Open Interest (OI) has stabilized over the past few days. Data obtained from Coinglass shows that traders are slowly regaining confidence in Dogecoin’s ability to sustain short-term recovery.
Coinglass added that Dogecoin OI-Weighted Funding Rate has risen to 0.0076% on Wednesday from Tuesday’s -0.0083%. The surge comes as traders increasingly pile into 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 last 24 hours. The bearish performance comes as the broader crypto market continues to underperform.
The Relative Strength Index (RSI) on the 4-hour chart at 48 risks extending its decline toward oversold territory. If the selloff continues, DOGE could potentially escalate the downtrend below $0.1500.
Dogecoin is currently trading below he 50-day Exponential Moving Average (EMA) at $0.1893, the 100-day EMA at $0.2024, and the 200-day EMA at $0.2090, and they could serve as strong resistance levels in the near term.
If the bearish trend continues, DOGE could drop below the $0.15 level and retest the $0.1424 support last tested in June.
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