Open Interest in Dogecoin and Shiba Inu Futures Plummets

Open interest in Dogecoin and Shiba Inu futures has significantly decreased, reflecting a broader trend in the meme coin sector.

According to a report from blockchain analytics firm Glassnode, futures open interest (OI) for these assets has seen a sharp downturn due to ongoing price struggles.

Dogecoin Open Interest Takes a Major Hit

Dogecoin, the largest meme coin by market cap, experienced a 58.45% drop in its futures open interest. The metric fell from $3.58 billion on December 9, 2024, to just $1.49 billion. This contraction indicates that traders are either exiting leveraged positions or losing confidence in speculative trading.

> “Futures Open Interest across the memecoins sector has dropped significantly since their peaks. $DOGE’s Futures OI 7D moving average saw a 58.45% decline, falling from $3.58B on Dec 9, 2024, to $1.49B today.”
> — glassnode (@glassnode) February 19, 2025

A reduction in open interest often suggests lower short-term volatility but may also indicate a potential market reset. As speculative interest wanes, the probability of major price fluctuations decreases.

Shiba Inu and Other Meme Coins Follow Suit

Shiba Inu saw a 74.41% decline in open interest, dropping from $323 million to $83 million. Other meme coins like PEPE, BONK, and WIF recorded significant drops of 71.93%, 75.10%, and 69.83%, respectively. FLOKI also saw a contraction of over 69.18%.

This widespread decline shows that traders are shifting away from speculative meme coin trades, likely due to broader market conditions and recent challenges related to pump-and-dump schemes.

Price Implications

A sharp drop in futures open interest can signify either a market bottom or diminishing investor confidence. While decreasing leverage can lead to more stable price action in the short term, it may also hinder significant recovery rallies as less speculative capital flows into these coins.

For Dogecoin and Shiba Inu, the current drop denotes potential reductions in price volatility. If traders gain confidence and rebuild positions, prices could see renewed upward momentum.

Dogecoin Price Analysis

Some analysts remain optimistic about Dogecoin’s future price movements despite the downturn in open interest. Crypto market analyst Crypto Rachel suggests that Dogecoin is currently oversold, reminiscent of previous market bottoms.

> “$DOGE is coiled like a spring—most oversold since the Feb shakeout. Meme coin fear is peaking, and that’s where legends are made.”
> — RACHEL CRYPTO (@Crypt0Rachel) February 19, 2025

According to her, the peak in meme coin fear often precedes strong recoveries, with potential for Dogecoin to reach new yearly highs.

Shiba Inu Price Outlook

For Shiba Inu, analysts predict upside potential if key support levels hold. Rose Premium Signals noted a strong reversal from a crucial accumulation zone.

> “$SHIB is showing strong signs of reversal after bouncing from the key accumulation zone. As long as SHIB holds above this zone, more upside is expected!”
> — Rose Premium Signals 🌹 (@VipRoseTr) February 16, 2025

As long as this support level remains, analysts expect a strong upward move with multiple targets defined between $0.00002338 and $0.00003659. Analyst CW indicated a major sell wall at $0.0000225, suggesting a possible smooth uptrend until reaching this resistance, with targets indicating potential price appreciation if momentum builds.