Dogecoin's (CRYPTO: DOGE) open interest has continued to decline, sparking a bearish outlook for the foremost meme coin.

What Happened: Based on historical data, the DOGE price is at risk of suffering a further crash thanks to the drop in its open interest.

Dogecoin's open interest has slid below the levels recorded in December 2024, when DOGE began to decline from its local high of around $0.46.

According to Coinglass data, the open interest is currently at $1.57 billion, way below its January 18 peak of $5.42 billion.

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 crash.

One factor that could cause traders to become more interested in Dogecoin is Donald Trump's threat to impose reciprocal tariffs on goods from China, which could threaten to cause a global meltdown.

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 Martinez8684 on X (formerly Twitter) warned that Dogecoin was at a make-or-break level.

If the DOGE price manages to stay above the $0.16 pivot point, then it could rally to $0.57, reaching the 1.272 Fibonacci extension level. However, if it fails to hold the $0.16 support level, then a drop to as low as $0.06 could occur, reaching the 2.618 Fibonacci extension level.

Crypto analyst Master Kenobi also indicated that a decline below $0.14 could mark the end of DOGE's bull run.

Dogecoin Price Movement: The DOGE price is down by 1.96% over the past 24 hours, trading at $0.15818 at press time, according to Benzinga Pro.

Related Reading: How To Buy Dogecoin (DOGE)