Dogecoin open interest has rebounded above $1.5 billion following a December low point, signaling renewed trader participation in the meme coin. The recovery marks a potential shift after open interest dropped to levels not seen since early 2024.
What Happened: Open Interest Rebounds
Open interest for Dogecoin fell below $1.3 billion on Dec. 19.
The metric has since recovered above the $1.5 billion threshold and maintained that level, indicating traders are opening new positions on the digital asset.
Open interest measures the total outstanding futures or options contracts for an asset.
Historical patterns show open interest increases have coincided with price recoveries. The meme coin approached $0.30 in September when open interest reached its peak of $6.01 billion.
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Why It Matters: Market Positioning
Trading volume for Dogecoin remains at 2025's lowest levels despite the open interest recovery, reflecting muted market participation. The broader cryptocurrency market shows extreme fear, with the Crypto Fear & Greed Index registering a score of 24.
Low liquidity has contributed to suppressed prices across digital assets.
The open interest rebound suggests traders may be positioning for a potential price bottom as 2025 draws to a close.
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