Dogecoin Price in the Risk Zone: Miners and Open Interest as Key Factors
Date: 2023-10-07 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
Dogecoin's price remains in a risky zone, trading around the $0.06 mark. In this article, we will examine how the actions of miners and open interest can affect the price of this meme cryptocurrency.
Miners' Dogecoin Reserves at Historic Lows
Dogecoin has been consolidating in the price range of $0.06 to $0.063 since mid-August. However, on-chain data analysis suggests that the price stagnation may be related to miners' actions. According to data, from August 17th to October 5th, miners have disposed of 320 million DOGE, reducing their reserves to a historic low of 4.35 billion DOGE. At the current price of $0.06, the value of tokens sold by them amounts to approximately $19.2 million.
Despite this, it remains unclear whether other market participants will take any measures to prevent further price declines in Dogecoin or if they will join the miners in selling.
Rise in DOGE's Open Interest
A significant influx of capital into Dogecoin derivatives markets could have a positive impact on the price of this meme cryptocurrency. As of September 21st, the open interest in DOGE was $205 million, and by October 5th, this figure gradually increased to $234 million.
Open interest represents the aggregate value of outstanding futures or options contracts in the futures market. An increase in this metric indicates growing trader interest in the asset.
Considering that miners' reserves of Dogecoin are currently at historically low levels, it is possible that their influence on price dynamics will begin to wane. If fresh capital continues to flow into the market, Dogecoin may avoid a significant drop.
Dogecoin's price is in a risky zone, and its future dynamics depend on the actions of miners and trader interest in this cryptocurrency.
