- Dogecoin price found support at $0.32 on Thursday, after falling 20% over the past four days.
- Derivatives market data shows early rebound signals for DOGE as traders react to Elon Musk’s rumored interest in buying British soccer team Liverpool FC.
- DOGE Open Interest has stabilized above the $3.4 billion market despite the $500 million liquidations that devastated the crypto market on Wednesday.
Dogecoin price stabilized around $0.32 on Thursday as the market selloff subsided following losses of 20% in 4 days. Market reports suggest that Elon Musk’s plan to buy Liverpool FC could improve sentiment among DOGE traders.
DOGE price finds support at $0.32 after 20% losses in less than a week
Dogecoin price stabilized around $0.32 on Thursday, ending a sharp 20% decline over the past four days.
This stabilization follows a broader process walk selling triggered by hawkish macroeconomic expectations that weighed heavily on the global memecoin market.
Notably, DOGE price managed to avoid a break below $0.32, as bears extended weekly losses to 20% on Thursday.
DOGE’s rare display of resilience at the $0.32 support level suggests that investors appear to be defending this crucial price zone.
Dogecoin Price Action | DOGEUSDT (Binance)
A crucial factor in supporting Dogecoin market sentiment Such is the speculation surrounding Elon Musk’s plan to acquire Liverpool FC.
Musk’s historical influence on the price of Dogecoin remains significant, as his trading decisions and tweets have often sparked retail interest in DOGE.
If confirmed, this development could reignite bullish momentum, with traders anticipating Musk’s involvement to bring DOGE back into the spotlight.
Dogecoin Traders Maintain $3.4 Billion Open Interest Despite Market Pullback
The resilience of Dogecoin price around $0.34 shows that the majority of DOGE traders remain reluctant to close their existing positions.
As an indication, the Coinglass Open Interest chart below shows the total value of unsettled derivative contracts with the Dogecoin futures market, providing insight into trader engagement and market liquidity.
Dogecoin Open Interest Price vs. DOGE | Source: Coinglass
The chart above shows that while the price of Dogecoin fell 20% between January 5 and 9, open interest only decreased 16% during that period, from $4.07 billion. at $3.4 billion at press time.
When open interest declines at a slower rate than price during a market downturn, strategic traders may interpret it as an early rebound signal for two main reasons.
First, the slower decline in Open Interest suggests that a significant number of traders are holding on to their positions, anticipating a potential recovery.
Second, it highlights that leveraged traders remain active, perhaps opening the way for short selling if bullish momentum returns.
As market caution persists amid macroeconomic uncertainty, DOGE’s elevated open interest indicates traders remain optimistic about price recovery amid favorable backdrop of Elon’s proposed purchase of Liverpool FC Musk.
Dogecoin Price Forecast: Short Squeeze Could Trigger $0.40 Breakout
Dogecoin price action continues to test the $0.318 support level, reflecting cautious trader sentiment.
The chart reveals that Dogecoin is down almost 20% in four days, but it remains above the 200-day moving average (DMA) at $0.284.
This suggests that long-term bullish traders may attempt to establish a price floor, reinforced by its proximity to the VWAP at $0.326, which is more in line with buyers’ re-entry interest.
Additionally, the narrowing Delta Volume, showing -$271 million, indicates that selling pressure has significantly reduced, pointing to a potential rebound.
Dogecoin Price Forecast | DOGEUSD
In the bullish scenario, Dogecoin could break above the 50-day DMA at $0.378, signaling a recovery towards the $0.40 resistance level.
This rebound would likely be fueled by short squeeze dynamics, given sustained open interest and active leveraged positions.
However, a decisive close above the VWAP remains a prerequisite to confirm further bullish momentum.
Conversely, if Dogecoin fails to hold support at the 200-day DMA, a further decline to $0.28 becomes plausible.
Increased selling pressure could amplify bearish momentum, invalidating the rebound narrative and signaling additional downside risk.