Dogecoin's Open Interest Plummets 67% Amidst Meme Coin Sector Slump

Dogecoin, the popular meme coin, has experienced a significant decline in open interest over the past three months, with a drop of 67%. This decrease comes amidst a broader market-wide correction that began in mid-January, during which the meme coin sector has been particularly hard hit. As the market leader, Dogecoin has suffered the most, with investors questioning the sustainability of the meme coin rally and sentiment weakening across the board.

Glassnode metrics confirm this downward trend, revealing that Dogecoin's open interest has fallen from an all-time high of $4.07 billion to just $1.33 billion today. This decline highlights that traders have lost interest in Dogecoin and that speculation has dried up, setting a negative tone for the entire meme sector. With Dogecoin now at a critical level, traders are watching whether bulls can step in to hold support and push prices higher, or if the trend will continue, leading to further liquidations and losses.

After this week's market breakdown, Dogecoin has struggled to reclaim key price levels and still faces a serious risk of further declines. The meme coin sector has been one of the hardest-hit areas in the crypto space, with analysts blaming speculative meme coin trading as a key factor behind the broader crypto correction. As sentiment weakens, Dogecoin and other meme coins continue to lose ground, unable to recover from massive sell-offs.

For Dogecoin to regain momentum, bulls must step in and defend key demand levels. A break below current support could lead to even more selling pressure, while a reclaim of higher resistance levels could signal a potential recovery rally. With open interest and volume declining, Dogecoin remains in a critical position, and the next few weeks will determine whether bulls can take back control or if the downtrend will continue.

Dogecoin is currently trading at $0.21 after weeks of underwhelming price action. Bears remain in control, and momentum continues to push the price into lower levels, making it difficult for bulls to reclaim strength. If bulls want to regain control, Dogecoin must push above the $0.24 level and hold it as support. Reclaiming this level would signal short-term strength and could trigger a relief rally toward higher resistance zones. However, with market sentiment still bearish, a breakout seems unlikely unless overall conditions