Dogecoin (DOGE) Funding Rates Turn Negative – Market Sentiment and Open Interest Decline

Dogecoin (DOGE) Funding Rates Turn Negative

The crypto market’s most prominent meme token, Dogecoin (DOGE), is attracting short bets as the meme sector experiences a general decline. Data from Coinalyze reveals that DOGE funding rates have recently turned negative, reaching -0.0027% as of Thursday. This level is reminiscent of those seen in October 2023. Funding rates represent periodic payments made by traders based on the price differences between futures and spot markets. Despite not being significantly high, the negative funding rates suggest a bearish sentiment within the market, particularly as DOGE has witnessed a 12% decline over the past week, wiping out gains made since March.

Market Sentiment and Open Interest

Additionally, DOGE’s open interest, which indicates the number of unsettled futures contracts, has decreased from almost $800 million on Monday to $611 million by Thursday. This decline further signifies a reduction in demand for the token. While DOGE funding rates briefly turned negative in March for a few eight-hour trading sessions, the sustained negative trend witnessed this week is more concerning. The broader meme coin sector has experienced losses of up to 40% over a seven-day period, prompting traders to shift away from riskier tokens towards bitcoin and stablecoins. Analysts caution that the anticipated “memecoin summer” may need to be put on hold as a result of these developments.

• DOGE funding rates have turned negative, indicating a bearish market sentiment.
• DOGE open interest has dropped, signaling reduced demand for the token.
• The meme coin sector has seen significant losses as traders move towards safer assets.