Open interest in Dogecoin and Shiba Inu futures has plunged significantly amid a broader trend across the meme coin sector. 

According to a report from blockchain analytics firm Glassnode, futures OI for these assets has seen a sharp downturn. This decline comes amid ongoing price struggles in the market, with meme coins facing declines.

Dogecoin Open Interest Takes a Major Hit

Dogecoin, the largest meme coin by market cap, experienced a 58.45% drop in its futures open interest. The metric fell from $3.58 billion on December 9, 2024, to just $1.49 billion. Notably, this contraction in OI indicates that traders are either exiting leveraged positions or becoming less confident in speculative trading.

Futures Open Interest across memecoins sector has dropped significantly since their peaks.$DOGE‘s Futures OI 7D moving average saw a 58.45% decline, falling from $3.58B on Dec 9, 2024, to $1.49B today: https://t.co/5yBcLzcXMA

How do other memecoins compare? Let’s dive in 👇 pic.twitter.com/oIKRmQdsBx

— glassnode (@glassnode) February 19, 2025

For context, a reduction in open interest like this often suggests lower volatility in the short term, but it can also imply a potential market reset. When speculative interest declines, the likelihood of large, unexpected price swings drops. 

Shiba Inu and Other Meme coins Follow Suit

According to Glassnode, Shiba Inu also saw a substantial decline in open interest, dropping 74.41% from $323 million to $83 million. Meanwhile, PEPE, BONK, and WIF recorded 71.93%, 75.10%, and 69.83% drops, respectively. FLOKI also saw a significant contraction of over 69.18%.

Notably, the widespread nature of this crash indicates that traders are now shifting away from speculative meme coin trades, possibly in response to broader market conditions and recent issues regarding pump-and-dump meme schemes like LIBRA and ELIZA.

Price Implications

Typically, a sharp reduction in futures OI can indicate either a market bottom or a sign of waning investor confidence. As leverage drops, price action could become more stable in the short term. 

However, it also means that less speculative capital is flowing into these meme coins, which could slow down any significant recovery rallies.

Particularly, in the case of Dogecoin and Shiba Inu, the current OI drop may lead to reduced price volatility. If traders regain confidence and start building positions again, it could trigger renewed upward momentum. 

Dogecoin Price Analysis

Despite the downturn in open interest, some analysts remain optimistic about Dogecoin’s future price movements. Crypto market analyst Crypto Rachel suggests that Dogecoin is currently at an oversold level, reminiscent of past market bottoms. 

$DOGE is coiled like a spring—most oversold since the Feb shakeout.
Meme coin fear is peaking, and that’s where legends are made.

I’m betting on a swift push to it, setting the stage for a massive new yearly high.

The countdown starts now! 🚀 pic.twitter.com/lF40oDVZA0

— RACHEL CRYPTO (@Crypt0Rachel) February 19, 2025

According to her, meme coin sentiment has reached peak fear, which historically precedes a strong recovery. She believes that Dogecoin could see a sharp price rebound, potentially reaching new highs for the year. 

Another analyst, Captain Parabolic, argued that Dogecoin could see a significant price surge over the next couple of years, with a bold prediction that the asset could reach $6 by 2026. 

Shiba Inu Price Outlook

For Shiba Inu, market analysts are also predicting an upside potential if key support levels hold. Rose Premium Signals, a market analytical channel, noted that Shiba Inu is currently bouncing off a crucial accumulation zone. 

🎯 $SHIB/USDT Analysis

🐶 #Shiba Inu (#SHIB) is showing strong signs of reversal after bouncing from the key accumulation zone.

🔥 As long as SHIB holds above the accumulation zone, more upside is expected!

🎯 Target 1: 0.00002338
🎯 Target 2: 0.00002979
🎯 Target 3:… pic.twitter.com/viNqBVb67U

— Rose Premium Signals 🌹 (@VipRoseTr) February 16, 2025

As long as this support level remains intact, the analyst expects a strong upward move. Further, the channel has identified multiple price targets for SHIB, ranging from $0.00002338 to $0.00003659. 

Additionally, market analyst CW noted that a major sell wall exists at $0.0000225. According to his analysis, Shiba Inu is expected to experience a smooth uptrend until reaching this resistance. In the short term, he maintains a target of $0.00004, indicating potential for further price appreciation if momentum builds.