Dogecoin price sits below key support as open interest falters

Dogecoin price has remained in a consolidation phase in the past few days as attempts to rebound faltered.

DOGE was trading at $0.1242, down by more than 42% from its highest point this year, meaning that it is in a deep bear market.

Dogecoin’s performance this week is a sharp contrast to what is happening among meme cryptocurrencies. MOTHER Iggy, which is associated with Iggy Azelia, rose by 18% on Wednesday, meaning that it has rebounded by over 75% from its lowest point this week. 

Hoppy, another relatively new meme coin, has soared by over 3,600% from its lowest point in May while Doland Tremp has jumped by 90% in the past few days. 

Dogecoin’s performance is likely because most day traders have focused on newer meme coins that have had strong performance since 2023. Indeed, tokens like Bonk, Pepe, and Dogwifhat (WIF) have outperformed mainstream cryptocurrencies like Bitcoin, Ethereum, and Solana in that period. 

Trading data shows that demand for Dogecoin has not been strong in the past few months. Its 24-hour volume regularly stays below $1 billion, which is a smaller figure compared to other smaller meme coins. For example, data by CoinGecko shows that Pepe’s 24-hour volume stood at over $1 billion.

The same is happening in the futures market where Dogecoin’s open interest has been in a downward trend. It peaked at over $1.9 billion in March and has now slumped to $578 million. Most of this open interest has come from Binance, Bybit, and Bitget.

Dogecoin open interest

Dogecoin has remained below key moving averages

Dogecoin price chart

Meanwhile, technicals show that Dogecoin price has remained below the 200-day and 50-day Exponential Moving Averages (EMA), a common bearish sign. 

This situation will likely worsen when the two moving averages cross each other to form a death cross. In most periods, a death cross is one of the most bearish signs.

Dogecoin is also sitting at an important support level since this price was the lowest swing on May 1st and was the neckline of the double-top pattern. That is a sign that the coin could soon continue falling, a move that will drive it to the psychological point at $0.10.