Dogecoin,
like
the
rest
of
the
crypto
market,
has
seen
a
slow
down
over
the
last
day
that
has
greatly
impacted
its
price.
However,
this
slowdown
isn’t
completely
limited
to
the
price
as
the
open
interest-weighted
funding
rate
of
the
meme
con
has
seen
a
significant
decline
over
the
last
day.

Dogecoin
OI-Weighted
Funding
Rate
Crashes
50%

Over
the
last
few
days,
as
the
Dogecoin
price
rose,
so
did
the

OI-weighted
funding
rate.
This
is
normal,
given
that
the
funding
rate
follows
market
sentiment.
In
times
when
crypto
traders
are
very
bullish,
the
funding
rate
rises
as
long
traders
have
to
pay
short
traders
to
keep
their
positions
open.
Then,
when
sentiment
is
skewed
toward
bearishness,
funding
rates
tend
to
drop,
and
short
traders
pay
long
traders
to
keep
their
positions
open.

 

This
is
important
as
the
funding
rates
help
exchanges
to
keep
contract
prices
and
their
underlying
asset
prices
balanced
no
matter
the
market
conditions.
These
fees
are
charged
at
intervals
by
the
exchanges,
but
the
duration
between
each
charge
varies
from
exchange
to
exchange.

Having
explained
that,
it
tells
us
that
the
drop
in
the
Dogecoin
OI-weighted
funding
rate
is
a
show
of
bearishness
among
investors.
When
the

Dogecoin
price
hit
$0.17
on
Thursday,
the
OI-weighted
funding
rate
touched
0.0243%.
However,
as
the
price
has
dropped
back
down
toward
$0.16,
the
OI-weighted
funding
rate
has
now
dropped
to
0.0105%,
according
to

data
from
Coinglass.

This
drop
is
a
more
than
50%
decline
from
its
Thursday
figures
and
shows
how
fast
sentiment
can
turn
on
a
cryptocurrency
such
as
Dogecoin.
However,
if
the
Dogecoin
price
does
begin
to
recover
once
again,
then
the
OI-weighted
open
interest
will
rise.

 

Open
Interest
Falls
Alongside
DOGE

Amid
the
decline
in
the
Dogecoin
price,
the

open
interest
has
also
taken
a
hit
as
well.
Its
recovery
to
almost
$1
billion
on
Wednesday,
May
22,
has
been
rocked
by
a
10%
crash
that
has
sent
it
back
down
toward
$900
million
once
more.

The
majority
of
this
decline
came
in
the
last
24
hours,
where
Coinglass
data
shows
that
the

Dogecoin
open
interest
saw
massive
losses
across
all
major
exchanges.
The
largest
drop
in
open
interest
came
from
the
Kraken
crypto
exchange,
dropping
35.94%.

This
was
followed
by
dYdX
with
an
18.57%
drop,
and
Coinbase
with
an
11.36%.
Other
exchanges
saw
varying
declines
between
1.25%
and
7.4%,
and
in
total,
the
open
interest
has
dropped
5.31%
in
the
last
day.
The
total
open
interest
is
now
sitting
at
$907.8
million.

Dogecoin’s
price
is
currently
trending
at
$0.1587,
with
a
4.59%
decline
in
the
last
24
hours.
Honorable
mention
of

Kabosu,
the
Shiba
Inu
dog
behind
the
infamous
Dogecoin
logo,
who
recently
passed
away.

Featured
image
created
with
Dall.E,
chart
from
Tradingview.com

Go to Source
Author: Scott Matherson

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