$2,376,500,726 Dogecoin in One Day; Reasons Behind It?

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Dogecoin (DOGE) traders are active, as open interest reaches $2.37 billion.

According to CoinGlass, open interest in DOGE has risen by 3.03% in the past 24 hours, reaching $2,376,500,726. After peaking at $5.42 billion on January 18th, Dogecoin's open interest fell to $2.26 billion on February 10th, and has since recovered.

Open interest represents the total value of outstanding derivatives contracts. An increase in open interest suggests new capital entering the market, potentially confirming current price trends and indicating future volatility.

Dogecoin currently trades at $0.2569, after dipping to $0.255. Its price has declined by approximately 2% over the past week.

Crypto markets have been experiencing slow price movements due to reduced optimism for further Federal Reserve interest rate cuts. The Consumer Price Index (CPI) report for January showed a 0.5% monthly increase, resulting in an annual inflation rate of 3%, higher than December's rate and slightly below January 2024's 3.1%.

Dogecoin's price action

Dogecoin has been trending within a descending channel pattern, but bulls are attempting to hold support at $0.23.

If support breaks, Dogecoin may sell off to $0.28. A further decline could indicate that bears are driving the market. Sellers may then attempt to push Dogecoin toward $0.20.

Conversely, a breakout and close above $0.28 suggests strong buying pressure near the support line. Dogecoin could then rally to the 50-day SMA at $0.32, where it is likely to encounter resistance. Read original article on U.Today