Dogecoin price continues to consolidate below $0.35 on January 12, as market sentiment hangs in the balance. Derivatives markets data shows DOGE traders reluctant to close out their positions with Trump’s inauguration now 1 week away.
Dogecoin price consolidates at $0.35 as traders await further clarity
Dogecoin (DOGE) remains under pressure as its price consolidates near $0.33 on January 12. The cryptocurrency’s price action reflects broader market concerns, with events such as FTX liquidations and the potential U.S. government sell-off of Silk Road-related Bitcoin holdings weighing heavily on investor sentiment.
Dogecoin Price Action | DOGEUSD
DOGE price faced a steep 18% decline between January 5 and January 9, dropping from $0.39 to $0.32 during a period of heightened market sell-offs. However, the meme coin managed a modest 5% rebound, climbing to $0.35 before encountering resistance. At press time, DOGE has slipped back to $0.33, reflecting continued hesitancy among traders to commit to long positions amid prevailing uncertainty.
Dogecoin Open Interest Crosses $3.5B as Traders take fresh Positions ahead of Trump Inauguration
Despite a period of price consolidation, speculative bets suggest that strategic Dogecoin traders are preparing for potential bullish triggers linked to upcoming events. Confirming this narrative, the Coinglass Open Interest chart below tracks the total value of capital currently invested in unsettled DOGE futures contracts.
Dogecoin Open Interest vs. DOGE Price | Source: Coinglass
DOGE price has risen by 7% over the past three days, climbing from $0.31 to $0.33. However, the 9.5% increase in Open Interest, from $3.24 billion to $3.55 billion, has significantly outpaced the price movement. This divergence suggests that traders are increasingly placing leveraged bets on potential upside rather than exiting positions despite stagnant price action.
Key narratives driving this surge in speculative positions include the newly established the Department of Government Efficiency (D.O.G.E.) initiative and Elon Musk’s continued involvement in Trump’s administration. With Trump’s Inauguration on January 20 now one week away, this 9.5% surge in Open Interest indicates renewed trader enthusiasm, as both long and short positions are being actively built in anticipation of a volatility spike.
If these speculative bets align with a bullish market response to Trump’s inauguration, DOGE could experience a breakout from its consolidation zone near $0.35.
DOGE Price Forecast: $0.40 Breakout Potential Hinges on Key Indicators
With Trump’s inauguration on the horizon, Dogecoin price forecast paints a positive outlook. Technical indicators show DOGE is currently consolidating near $0.34, with traders eying the upper Bollinger Band (BB) at $0.39 as a pivotal resistance level.
The BB width suggests reduced volatility, implying that DOGE may be coiling for a breakout. Trading volume at 456.11 million, coupled with a mild recovery in the Bull-Bear Power (BBP) indicator at -0.01235, hints at stabilizing market sentiment after DOGE’s recent plunge and subsequent 7% rebound.
Dogecoin price forecast | DOGEUSD
A bullish scenario could unfold if DOGE sustains momentum above the Volume Weighted Average Price (VWAP) of $0.3395. This would target the $0.39 resistance and potentially pave the way for a rally toward $0.40.
Increased volume and positive BBP movement would validate this breakout, aligning with market optimism surrounding upcoming events.
Conversely, a bearish breakdown below $0.33, accompanied by declining volume, could reintroduce selling pressure, potentially retesting the lower BB limit at $0.28. DOGE must hold its current consolidation to avoid a bearish reversal.
The post Dogecoin Price Analysis: DOGE Open Interest Crosses $3.5B as Trump Inauguration Nears appeared first on CoinGape.
