Dogecoin Price Drop Signals Market Caution

The open interest rate of Dogecoin has sharply decreased to 1.42 billion dollars, in stark contrast to its peak of 12 billion dollars in April. The continuous decline of OI, especially during the recent price drop of DOGE to 0.32 dollars, indicates that traders are unwinding positions amid declining optimism. The downward trend of OI prices often indicates a decline in confidence in short-term price recovery. Along with a 20% decline in DOGE prices in the past week, the narrowing OI indicates that traders are more cautious when opening new positions, signaling the possibility of further adjustments unless market sentiment reverses. MDIA Signals Slowdown and Cautionary Psychology MDIA said that Dogecoin holders are increasingly choosing to hold instead of trading their assets. MDIA, tracking the average age of coins on the blockchain calculated by purchase price, has steadily increased to 335 days. This trend indicates that long-term holders are not actively trading or reallocating their assets, indicating stagnation in the market. According to tradition, MDIA often comes with decreased liquidity and lower demand, usually seen as a signal of price reduction. If this upward trajectory continues, it highlights the lack of new capital or speculative activity in the DOGE market, in line with its recent price decline. This supports the narrative of cautious sentiment dominating Dogecoin's short-term prospects. Dogecoin Struggles Below Key Support Level as Downside Momentum Dominates On the daily chart, Dogecoin is making an effort to reclaim important support levels after a recent decline. The price has dropped below the $0.35 threshold, which used to be a significant support level, indicating the continued downward momentum. The MACD indicator confirms this bearish outlook. At the time of reporting, the MACD line is in the negative zone, reflecting the downward momentum. The histogram chart shows decreasing selling pressure, but the prospects for recovery are still limited until there is a clear price increase intersection. DYOR! #Write2Win #Write&Earn $DOGE (DOGEUSDT)