$DOGE Dogecoin’s derivatives market is softening after a brief rise to $1.96 billion on Tuesday in futures Open Interest (OI). This surge from $1.55 billion on January 1 occurred amid an overall increase in risk appetite for crypto assets, including meme coins.
However, macroeconomic uncertainty weighed on markets, triggering a widespread sell-off, as OI narrowed to $1.82 billion on Friday. If the downward trend persists, signaling low retail demand, price recovery could be a pipe dream. The chances of the downtrend extending to test the December low of $0.1161 would increase significantly.
Dogecoin Open Interest | Source: CoinGlass
Meanwhile, Dogecoin spot ETFs recorded a minor inflow of nearly $334,000 on Thursday, despite heightened volatility in the crypto market this week.
SoSoValue data shows the ETF products listed in the US posted the largest inflow since launch, $2.3 million on January 2, followed by the second-largest, $1.6 million on Monday. A steady increase in ETF inflows could boost risk appetite and increase the odds of Dogecoin’s recovery.
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