{"d86e9924e1e2a84b7c31e22f41ef67ec":"Meme coins such as Dogecoin were not spared in the market slide earlier this week. Here\u2019s a look at the extent of the damage now that the bears have eased off their assault and the dust has settled temporarily.","8c06e44e7ff9c678ae3b8605b4cf32f1":"One of the most notable observations about Dogecoin was that its open interest dropped to as low as $1.41 billion.","59f90654f7dd57fb4a91be0a2d0e79ee":"This was noteworthy because it was the lowest level of open interest that the king of the meme coins achieved in the last 6 months.","a39537e62cecf67aaeb00313e6bfec12":" Dogecoin open interest\/ source: Coinglass","abb8cd6f2ccdc64dd9cc469ebdc26dce":"For context, Dogecoin\u2019s open interest peaked at just over $6 billion in mid-September, which was also its highest OI figure in history. This means it cooled down by roughly 75% from its peak to its lowest low.","78d4cdfb303bcdef287d6016e057db86":"The sharp drop undid all the open interest that Dogecoin gained in Q3. A clear sign that this was a liquidity flush from the derivatives markets.","6e93b95611aec5867f984c1035f8ac4b":"Unraveling the Impact of Derivatives Demand on Dogecoin Price Action","58dd967705c2302a0115e9ffaee89302":"The derivatives liquidity exit was also accompanied by heavy liquidity outflows. Dogecoin price traded at $0.16 at press time, which was equivalent to a 15% drop in the first week of November.","6cb52ad7e1f899ee0d0fa61cca107565":"This also meant it was down by more than 47% from its highest price point in Q3.","9d073a1ebf0c7e5f2d098c6a5b461950":"The massive cool-down in Dogecoin open interest meant that the meme coin may now be less susceptible to leveraged liquidation-induced price volatility.","53a56256ef7fb01c8811aec371123d13":"The surge in open interest in Q3 meant that DOGE was gaining popularity in the derivatives segment, especially on account of its position as the top meme coin.","666780ba8c8f2b0796b2a88e1ba0f184":"The heavily discounted open interest also means spot demand will have a broader impact on its price movements with lower liquidation risk.","1e32ae7ea8d393fdef101ec1ff483931":"Speaking of spot netflows were still in favor of outflows in the last 2 days, albeit significantly lower. Net outflows pushed slightly over $6 million in the last 24 hours.","ac65dbd61b7f8dfbd30cd58887ee33ce":" Dogecoin spot flows\/ source: Coinglass","01c39b9b174a0625d2add31ec150c8e6":"Spot flow data also confirmed that demand was relatively weak despite the recent discount. The weak demand in the spot segment also aligned with weak demand from the whale cohort.","bc570b0c2277ca4e7a072c9cbf1bfd74":"Whales contributed to the sell pressure in the last 2 days, during which their net outflows on Binance and OKX surged above $5 million.","189f4e4c452c377e4b9e3e14db68ee3f":"Meanwhile, the same category of traders executed about $75 million worth of Dogecoin long positions.","67e2e9074b222ea98f81146a69ed852d":"Dogecoin whale activity gestured weak bullish expectations just as was the case with previous periods where it experienced cooling sell pressure.","8f6f6de0d2e3f581167825a1513d8ff2":"In other words, the king of the meme coins might still be at risk of more downside.","984d7d48e4658dc22ad91f97859c4c53":"Dogecoin Price Action Mirrors its Performance in Q2 2024","9f526df52fa8ef6c141c6727c8bbdafc":"The meme coin community has been wondering about Dogecoin\u2019s next move. The next best thing to a crystal ball in this case could be a glance at past periods that delivered almost similar price action to its latest performance.","a9acba75e321309c90a0515fc99c832d":"One such example could be its performance in Q2 2024, during which price demonstrated weak recovery attempts after a bullish Q1 performance.","7cf176705c1a41f134909a3aba5782ba":" Dogecoin price\/ source: TradingView","4bd25eda6c47531ae8882dc280eda429":"Interestingly, robust rallies preceded both patterns. The same pattern saw further capitulation before the market embarked on a recovery.","0798ee1759d246392ae637488ee87332":"If the pattern continues to play out, then DOGE price may be headed for another episode of capitulation.","b54e72e2ac4b1e474346cd1641c010ac":"Interestingly, this coincides with the lack of significant demand, especially from whales, despite discounted prices.","86e53869479a064dd8c4929e824533e7":"However, this does not necessarily mean that price will adopt a similar path. Diverging market factors may trigger a different outcome.","5140966264b9dc840f2aed2489bdf11a":"The post Dogecoin Open Interest Resets To 2025 Lows: What It Means For DOGE Price appeared first on The Coin Republic."}