Trading activity in Dogecoin was subdued over the weekend, leading to a decline in open interest on the futures market. According to figures from Coinglass, open interest fell by 2.4% in the past 24 hours, dropping to $959 million. During the same period, increased selling pressure became evident once again across the cryptocurrency market.
Weekend selling pressure continues
The weakness in digital assets that persisted throughout last week extended into Sunday with a fresh wave of selling. In some market segments, a shift in investor focus toward AI-related stocks is believed to have accelerated capital outflows from crypto assets.
Many cryptocurrencies, including Dogecoin, traded in negative territory. Liquidations across the market reached $141 million. Dogecoin itself lost 2.2% in value over 24 hours to settle at $0.073, bringing its weekly loss to 12%. Even as equity markets tested new highs, the outflow from spot ETFs and the US Federal Reserve’s ongoing tight monetary policy continued to apply pressure on the crypto market.
Coinglass data revealed that open interest in Dogecoin declined to $959 million, with prices falling on both daily and weekly scales.
Lowest level of June recorded
On June 23, Dogecoin slipped to $0.071, marking its lowest point since November 2023. Losses during June alone approached 27%. This signals not only a rough period for Dogecoin but also highlights broader weakness for the overall crypto market as the quarter draws to a close.
Market participants are now shifting their attention to the third quarter. The main question is whether the current downtrend will give way to a short-term recovery or if the persistent lackluster performance of past quarters will carry over into the new period.
Technical indicators flash oversold zone
Dogecoin has experienced gradual depreciation since the start of the year. It is notable that in 2024 so far, Dogecoin has posted a positive monthly return only once. Over this period, technical indicators have also grown weaker. The daily RSI dropped below 30, reaching as low as 24. The Relative Strength Index (RSI) is a key metric for gauging price momentum.
Mini glossary: RSI is a technical indicator that measures the recent price momentum of an asset. Generally, values below 30 signal oversold conditions, while those above 70 indicate overbought territory.
An oversold RSI sometimes triggers brief rallies in the market. However, a drop below the 30 level is not a guarantee of a price reversal on its own; the indicator mainly highlights current price weakness. The present market setup suggests that while a short-lived relief bounce in Dogecoin is possible, there are not yet clear signs of a definitive trend reversal.
