Dogecoin’s total open interest has reached its lowest level since the beginning of the year, plummeting to $2.51 billion. This decline can be attributed to the steady decrease in DOGE’s value over the past month.
The decline in open interest signifies a significant decrease in the number of outstanding options or futures contracts that are yet to be settled or closed. It indicates a decrease in market activity and interest. In contrast, an increase in open interest suggests growing interest and activity in the market.
Currently, DOGE’s open interest stands at $2.51 billion, marking a decline of 80% since June 8. Just a month ago, the meme coin’s open interest exceeded $10 billion.
The sharp decline in Dogecoin’s derivatives market activity can be attributed to the consistent decrease in its value during this period. The cryptocurrency is currently trading at $0.10, experiencing a notable 30% drop in price over the past month.
The decline in value even led many futures traders to demand short positions on July 6. This was evident from the negative funding rate (-0.026%) on that day.
Despite the decrease in DOGE’s value, its Chaikin Money Flow (CMF) indicator has maintained an uptrend. The CMF is currently positioned above the zero line at 0.03, indicating an upward trend.
Overall, Dogecoin’s derivatives market activity has significantly declined due to its decreasing value. However, the CMF indicator suggests that there is still some positive momentum in the market.
