The Dogecoin (DOGE) price is buckling under the weight of falling crypto market sentiment. In a unique twist, the leading meme coin is currently changing hands for $0.1011, down 2.25% in the past 24 hours, per CoinMarketCap data. With a new wave of sell-off on the altcoin market, the chances that the Dogecoin price will test the weekly low remain high.
Dogecoin price at risk of more sell-off?
Sentiment on the altcoin market is highly negative at the moment, as total altcoin volume has fallen by over 50%. Dogecoin is particularly susceptible to a sell-off, as key metrics like daily trading volume have fallen by 7%, a sign of a waning short-term outlook.
Dogecoin has a very rich history of adapting to market trends, exhibiting more volatility in relation to Bitcoin. According to open interest data over the past few months, there is hardly any stability on the DOGE market.
Futures market traders are always switching sides, in line with spot market trends. In early February, Dogecoin open interest jumped by 12% in 24 hours, a move that sent a positive projection to the meme coin’s traders.
Current open interest trend is negative, aligning with the grand bearish outlook of the broader market.
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Dogecoin ETF not adding momentum
While the broader crypto market is pushing for a rebound, the potential growth catalysts for Dogecoin are significantly limited. Dogecoin ETF products have not lived up to their potential since their launch, raking in just $6,670,000.
This figure pales in comparison to the XRP ETF that has now bagged a total inflow of $1.23 billion. Notably, with ETF not providing the required liquidity to trigger scarcity, the rebound potential of Dogecoin remains quite limited.
The digital currency might be at risk of short-term price slippage, but support from personalities like Elon Musk remains a major attraction for the coin.