The Dogecoin price suffered a harsh setback this Friday, recording an abrupt 12% drop in the last 24 hours and losing the 0.14 dollar level. Market analysts warn that traders are withdrawing liquidity at an alarming rate, causing open interest in futures to plummet to lows not seen since April 2025. This retreat marks a drastic shift in investor sentiment, moving from speculative euphoria to extreme caution in a matter of days.
Hard data reveals a massive liquidation in the derivatives market, where open interest has collapsed to 1.4 billion dollars. This figure represents a shocking 77% decrease from the peak of 6 billion reached last September 13. Furthermore, daily trading volume increased by 65%, which in this bearish context indicates strong selling pressure as holders attempt to exit their positions before losses deepen.
Is this the end of the bull cycle for popular memecoins?
This decline is not an isolated event, but part of a broader correction that has led the asset to lose 56% year-to-date. The Fear and Greed Index has hit a bottom of 11 points, an “extreme fear” reading that has historically coincided with local floors before significant rebounds. However, the current difference lies in the weakened technical structure, where the token has fallen another 14.5% in just the last week, testing the patience of long-term investors.
The relevance of this move lies in the breakdown of a critical bullish trend line that had sustained the asset’s value during previous corrections this year. If bears manage to consolidate the price below 0.13 dollars, technical analysis suggests an imminent drop toward the 0.08 dollar target. This would imply an additional 38.5% decline from current levels, a scenario that could further destabilize confidence in the meme asset economy.
Will new presale narratives manage to reactivate speculative interest?
Despite the gloomy outlook for established cryptocurrencies, speculative capital seems to be rotating toward new high-risk, high-reward opportunities. Presale phase projects like Maxi Doge ($MAXI) are gaining traction rapidly, having raised over 4 million dollars in a few weeks. This new proposal seeks to capitalize on aggressive trading culture with staking rewards and community competitions, attracting investors looking for yields that market leaders can no longer offer in the short term.
Finally, the market finds itself at a decisive turning point where the defense of current support will define the course for the rest of the quarter. While traditional traders watch with caution, a new generation of “degens” bets on fresh narratives that inject energy into the ecosystem. Recovery will depend on whether extreme fear acts as a buying catalyst or if, conversely, it accelerates the final capitulation toward new annual lows in the coming sessions.
