Dogecoin Weighted Funding Rate Falls 50% In 24 Hours, What This Means For Price
Release: 2024/05/25 11:04 Reading: 944
- Original author：Bitcoinist
- Original source：https://bitcoinist.com/?p=301872
Dogecoin: Bearishness Emerges Amidst Market Slowdown
Dogecoin, alongside the broader crypto market, has experienced a slowdown in the past day, significantly impacting its price. Notably, this slowdown extends beyond the price, as the open interest-weighted funding rate for the meme coin has plummeted over the same period.
Dogecoin OI-Weighted Funding Rate Crashes 50%
As Dogecoin's price ascended over the past few days, so did its OI-weighted funding rate. This correlation aligns with the funding rate's tendency to mirror market sentiment. When crypto traders exhibit bullishness, the funding rate increases as long traders compensate short traders to maintain their positions. Conversely, when sentiment shifts towards bearishness, funding rates tend to decline, and short traders pay long traders to hold their positions open.
Implications of Funding Rate Drop
Funding rates play a crucial role in ensuring that contract prices and underlying asset prices remain balanced on exchanges regardless of market conditions. Exchanges charge these fees at intervals, but the frequency varies between platforms.
The recent drop in Dogecoin's OI-weighted funding rate indicates a shift towards bearishness among investors. When Dogecoin reached $0.17 on Thursday, the OI-weighted funding rate stood at 0.0243%. However, as the price has retreated towards $0.16, the funding rate has plummeted to 0.0105%, according to data from Coinglass. src="/uploads/20240525/171660823066515ce6ecf97.png">
Source: Coinglass
This decline represents a significant 50% drop from Thursday's levels, highlighting how rapidly sentiment can change for a cryptocurrency like Dogecoin. However, if the Dogecoin price begins to recover, the OI-weighted funding rate is likely to rise again.
Open Interest Declines Alongside DOGE
Amidst the Dogecoin price decline, open interest has also taken a hit. Its recovery to nearly $1 billion on Wednesday, May 22, has been eroded by a 10% crash, pushing it back towards $900 million.
The majority of this decline occurred in the past 24 hours, with Coinglass data revealing significant losses in open interest across major exchanges. Kraken saw the largest drop, at 35.94%. dYdX followed with an 18.57% decline, and Coinbase with 11.36%. Other exchanges experienced varying declines between 1.25% and 7.4%, resulting in a total open interest drop of 5.31% over the past day. Currently, the total open interest stands at $907.8 million.
Dogecoin's price is currently hovering around $0.1587, marking a 4.59% decline in the past 24 hours.
Honorable Mention: Kabosu
It is worth noting the recent passing of Kabosu, the Shiba Inu dog featured in the iconic Dogecoin logo. src="/uploads/20240525/171660823066515ce6ecf97.png">
DOGE Price Above $0.16 | Source: DOGEUSDT on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com
Recent news
More>- PEPE Now Available for New York Users to Trade on Coinbase 11-28
- Tether Discontinues Support for EURT Stablecoin: Here’s Why 11-28
- Best Trending Meme Coins in December 2024: 6.5 Billion Coins Sold in BTFD Coin’s Ongoing Presale, Pepe Coin and Ponke on the Rise 11-28
- As Top Cryptos Recover After Recent Dip, New Meme Coin Pepe Unchained’s Unstoppable Presale Powers Ahead — Only 16 Days Left 11-28
- As Top Cryptos Recover After Recent Dip, New Meme Coin Pepe Unchained’s Unstoppable Presale Powers Ahead — Only 16 Days Left 11-28
- As Top Cryptos Recover After Recent Dip, New Meme Coin Pepe Unchained’s Unstoppable Presale Powers Ahead — Only 16 Days Left 11-28
- Missed PEPE? Don’t Miss Out on This New Token That’s Breaking Records at Lightning Speed 11-28
- CHILLGUY meme coin could be at risk as smart money sells 11-28
- Top Trending Meme Coins to Buy in 2025: BTFD Coin Presale Raises Over $150,000 in Less Than 24 Hours Since Going Live, Dogecoin and Dogs Gro... 11-28
Selected Topics
More>>-
- pepecoin Price Analysis
- This topic provides articles related to PepeCoin price, covering key PepeCoin insights and analysis
-
- pepe:meme star
- This topic provides articles related to the most promising meme, PEPECOIN, a project with the potential to become a mainstream digital currency. It has the advantages of decentralization, reliability, ease of use, fast speed, low cost and scalability, and is expected to be more widely used in the future
-
- pepecoin price prediction
- We’ve gathered facts about pepecoin’s success story and provided a pepecoin price prediction
Selected Articles
More>>- 1 Avalanche and Aptos rival raises over $600k in 2 weeks
- 2 Crypto Prices Today: Market Continues Rally With BTC, Pepe Coin, SEI Rising
- 3 Major Analyst Crypto Tony Bullish on These Meme Coins, But One Stands Out
- 4 MTAUR Ready to Crush DOGE and PEPE: 100x Price Growth Incoming?
- 5 Memecoins Surge in 2024, Popcat Leads with 7,621% YTD Gain, Outshining Top Crypto Tokens
- 6 PEPE Meme Coin Smashes ATH – See How Much an $83 Investment in Pepe Coin Last Year is Worth Now
- 7 Top 4 Altcoins At 70% Discounts – Last Chance!
- 8 Dogecoin Creator Proposes DOGE to NBA Legend Scottie Pippen
- 9 Top Analyst Who Predicted Dogecoin (DOGE) Last 170x Rally Forecasts New Parabolic Rise, Here’s His Price Target
- 10 New Solana Memecoin Trump Loves Elon to Rally 15,000% Before Exchange Listing, SHIB and Bonk Crash
ABOUT US
We are building the most influential，trusted information platform for aglobal community engaged in thd transformation of the financial system andthe emerging crypto economy.PEPE is an integrated platform for media,events,data & indices for the next generation fo investing and the future of money.
Get in touch with the PEPE team at admin@pepecoinbuy.com