Dogecoin (CRYPTO: DOGE) was trading in the red on Friday morning as the meme coin retraced slightly after enjoying three consecutive days of gains since May 20.

What Happened: Dog-themed cryptocurrency Dogecoin was trading at $0.227, in the last 24 hours. The cryptocurrency saw its trading volume slip by 1.84% to $3.36 billion in the same period, according to CoinMarketCap.

Dogecoin had been experiencing bullish momentum this week, especially as the price of Bitcoin (CRYPTO: BTC) surged. The rise reached $0.2544 on Friday morning, marking Dogecoin's highest level since May 12.

However, as expected, selling pressure emerged, driven by profit-taking and macroeconomic factors, leading to a U-turn in the price action early Friday. Within a few hours, Dogecoin dropped to $0.227, erasing its daily gains but still showing a 3.62% increase over the week.

The $3.36 billion in 24-hour trading volume indicates that Dogecoin continues to generate significant interest in the market. Nevertheless, the 1.84% decrease in volume suggests a slight decline in activity, which might be attributed to the crypto market's caution following the recent rally.

Why It Matters: Bitcoin reached new highs this week, exceeding $111,000 for the first time, and surprisingly, all of its circulating supply is currently in the green, despite the recent price action.

According to Glassnode data, Bitcoin funding rates remain low, standing slightly below neutral at 0.0079%, which is surprising given the cryptocurrency's price rally. These rates, charged by lenders to borrowers to open leveraged positions, typically indicate strong speculative interest when they rise above neutral or, in this case, zero. However, the current rates reflect a surprising lack of speculative enthusiasm among traders.

Out of the top 10 cryptocurrencies, only Dogecoin and Shiba Inu (CRYPTO: SHIB) have funding rates above neutral, indicating mild speculative interest among traders who are betting on short-term price movements. The remaining major cryptocurrencies, such as Ethereum (CRYPTO: ETH) and Binance Coin (CRYPTO: BNB), have funding rates below neutral, which is in line with the broader market sentiment.