Dogecoin Dips 2% as Open Interest Surges to $3 Billion—A Bullish Breakout Ahead?

Updated

May 15, 2025

Gambar Dogecoin Dips 2% as Open Interest Surges to $3 Billion—A Bullish Breakout Ahead?

Jakarta, Pintu News – As of May 14, the price of Dogecoin was trading at $0.2316, signaling difficulty in breaking resistance at $0.25. This development is in line with Bitcoin’s retreat from its high of $104,000.

Despite the intraday decline, Dogecoin’s Open Interest (OI) has surpassed $3 billion, indicating high interest from derivatives traders. The question now is: will this surge in investor interest, coupled with a bullish technical pattern, be strong enough to push the Dogecoin price through $0.25 and trigger a 50% rally towards $0.368?

Before that, let’s explore Dogecoin’s price movements today!

Dogecoin Price Drops 2.36% in 24 Hours

On May 15, 2025, Dogecoin’s price dipped by 2.36% over the past 24 hours, trading at $0.2321, or around IDR 3,841. During the day, DOGE reached a high of IDR 4,101 and dropped to a low of IDR 3,786.

At the time of writing, Dogecoin’s market cap stands at around $34.64 billion, with trading volume dropping 19% to $2.12 billion within 24 hours.

Dogecoin Forms Bullish Pennant Pattern, Targets $0.36

Dogecoin’s price movement in the past two weeks formed a bullish pennant pattern. The 36% increase in early May created a flag pole, while the subsequent consolidation phase formed a pennant.

Based on this pattern, Dogecoin could potentially experience a 53% rally towards $0.368, which is calculated from the flag pole height added to the breakout point.

Over the past three days, Dogecoin price printed lower highs, but is now close to the upper trend line of the pennant pattern.

If DOGE is able to print a firm daily candlestick close at the $0.240 level, it will confirm the breakout and could trigger a double-digit uptrend towards the $0.368 target.

Additional signals supporting this bullish scenario came from the Relative Strength Index (RSI) indicator which bounced off the 50 level, signaling that despite the correction, the strength of the bulls is still dominant.

However, this optimistic price projection could be invalidated if DOGE fails to break the upper trend line of the pennant pattern. If the price drops and breaks the $0.220 support level, then a bearish scenario could occur, with a potential further correction towards $0.180-equivalent to a decline of around 18%.

DOGE’s $280 Million Open Interest (OI) Spike Risks Wiping Out $62 Million Worth of Short Positions

Based on data from CoinGlass (5/14), Dogecoin’s open interest now stands at $3.03 billion, up about $280 million from its previous low of $2.75 billion. This increase shows the growing investor interest in this original meme coin.

While DOGE prices are in a consolidation phase, the surge in open interest reflects the market’s growing optimism.

In addition, the DOGE funding rate is currently at 0.0105%, which signals a strong bullish sentiment. This means that long positions pay a fee to short positions to maintain a balance between the spot price and the perpetual contract-a signal that market participants are going long.

An additional driver for the price rally can be seen from Coinglass’ Liquidation Map, which shows that if DOGE prices break $0.25, the potential liquidation of short positions could reach $62.87 million.

This massive liquidation of short positions has the potential to significantly strengthen the breakout rally.

In conclusion, Dogecoin is currently in a mature bullish consolidation phase, ready for a 50% rally. The surge in open interest as well as the potential liquidation of $62-67 million worth of short positions reinforces the optimistic outlook towards the $0.368 target.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

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