Bitcoin’s price has found stability above $67K, but traders are now shifting their focus to memecoins. Specifically, Dogecoin’s Open Interest (OI) has been on the decline, signaling a bearish sentiment. While Bitcoin has remained steady, traders are becoming increasingly interested in memecoins like Dogecoin, Shiba Inu, and Pepe. These tokens have seen double-digit gains and have high levels of OI. However, Dogecoin’s OI has continued to decrease, suggesting a bearish outlook and potentially delaying a strong recovery for DOGE in the short term.
OI rates are crucial indicators of market sentiment. Rising OI usually indicates bullish expectations, while falling OI suggests bearish sentiment. Dogecoin’s OI has been trending downwards, dropping below $900 million since May 27th. This decline reflects a lack of confidence in DOGE’s price potential among market participants. Furthermore, the Cumulative Volume Delta (CVD) for DOGE has been on a downtrend, indicating that sellers dominate the market. These indicators point to significant selling pressure for Dogecoin.
Currently, Dogecoin is trading at $0.16 with a slight 24-hour increase of 0.12%. This is a significant increase from its all-time low of $0.0000869. However, DOGE recently experienced a slight correction, trading at 0.00000235 after falling from 0.0000255. The 200-day Exponential Moving Average (EMA) and an ascending trendline provide key support for this pair. On the resistance front, Dogecoin’s upward movement is limited by the 20-day EMA and the 50-day EMA. The Relative Strength Index (RSI) is currently below the midline in the neutral zone, indicating a bearish divergence.
Bitcoin, on the other hand, has struggled to establish a clear bullish trend. It surged to $72,000 last week but underwent a correction, settling at $68,723. The market’s volatility and lack of investor confidence have contributed to this correction. The upcoming release of the US inflation data on personal consumption expenditure (PCE) is expected to bring heightened volatility to the crypto market. This data will provide insights into the Federal Reserve’s future moves on interest rates, with economists predicting the first interest rate cut to occur in September. Bitcoin’s ability to break out of its current state and surpass $70,000 depends on these economic indicators. A successful breakout could trigger FOMO among investors and potentially drive Bitcoin’s price towards $80,000.