Dogecoin Price Falls After October Flash Crash
Dogecoin (DOGE) continues to drop, trading near $0.1587 on Wednesday. Since the October 10 flash crash, Dogecoin lost 37% of its value. The crash wiped out over $19 billion in crypto assets in one day. Dogecoin’s market cap stands at $24 billion.
The wider crypto market shows bearish sentiment. Investors remain cautious before the Federal Reserve’s December meeting. Fed Chair Jerome Powell said a rate cut in December is uncertain. This caused many investors to avoid risks. The crypto market also lacks strong price drivers currently.
Dogecoin Derivatives Market Shows Growing Interest
Dogecoin’s futures Open Interest (OI) rose to $1.66 billion on Wednesday. This follows a drop to $1.37 billion on November 7, after the October crash. Rising OI means more investors are trading DOGE futures. This suggests growing interest and some return of confidence. Increasing risk appetite may boost Dogecoin’s chances of a short-term recovery.
The DOGE OI-Weighted Funding Rate rose from -0.0083% on Tuesday to 0.0076% on Wednesday. More traders are opening long positions. Dogecoin needs to stay above the $0.1500 support level. Falling below this could strengthen bearish trends.
Technical Signs Show Dogecoin Faces Downside Risks
Dogecoin’s technical outlook remains weak despite some market stability. The Relative Strength Index (RSI) is at 39 and may drop below 30, entering oversold territory. The price is below key moving averages: 50-day EMA ($0.1893), 100-day EMA ($0.2024), and 200-day EMA ($0.2090). This indicates a weak trend.
The Money Flow Index (MFI) is below a descending trendline, showing outflow of funds from DOGE. A fall below $0.1500 could push Dogecoin toward $0.1424, a support level last tested in June. However, stable derivatives and growing investor interest could still support a recovery.
