Key Insights
- Dogecoin open interest reaches $1.41 billion, signaling stabilization after significant sell-offs and liquidations across the crypto market.
- Dogecoin ETFs expand presence, with listings on Nasdaq and European markets, showing increasing institutional recognition of the token.
- The “Such” app, backed by Dogecoin developers, is set to launch in 2026, aiming to enhance user interaction and token utility.
Dogecoin has entered a phase of sideways trading following a sharp seven-day decline between January 14 and 20. The meme-based cryptocurrency is now fluctuating between $0.12 and $0.129, indicating a period of price consolidation. This range-bound movement comes after substantial volatility and selling pressure across the broader crypto market.
According to data from CoinGlass, Dogecoin’s open interest rose by 0.2% in the past 24 hours, reaching $1.41 billion. This subtle uptick is notable, as it suggests a potential bottoming out after a period of significant derisking. Traders are gradually returning to the market with renewed, although cautious, interest in derivatives positions.
Leverage Clears as Market Eyes Next Move
The market witnessed widespread liquidation earlier in the week, which led to a drop in open interest. The recent increase, although minor, points to reduced leverage and potential stabilization. As excess risk exits the market, a clearer direction may emerge for DOGE in the coming sessions.
Dogecoin remains slightly down, trading at $0.1242 after dropping 0.3% over the last 24 hours. The token is down almost 10% on the weekly chart. Meanwhile, the broader cryptocurrency market has posted $292 million in liquidations over the same period, reflecting a generally bearish sentiment ahead of upcoming macroeconomic decisions.
Fed Policy and Volatility Expectations
Investor focus is now shifting toward the U.S. Federal Reserve’s interest rate decision scheduled for January 28. Analysts expect the central bank to hold current rates, with projections indicating only two cuts throughout 2026. Market volatility could increase depending on the Fed’s tone and forward guidance.
Institutional interest in Dogecoin continues to grow. The 21Shares Dogecoin ETF (TDOG) began trading on Nasdaq this week, while the firm’s 2x Long Dogecoin ETF (TXXD) and a European-listed ETP endorsed by the Dogecoin Foundation remain active. Additionally, Cyber Hornet has filed for an S&P Crypto 10 ETF, which includes Dogecoin in its basket.
The Dogecoin Foundation and House of Doge are preparing to launch the “Such” app during the first half of 2026. This upcoming platform is expected to provide new utility and engagement options for DOGE users, supporting long-term ecosystem development.
