Dogecoin Open Interest Crashes To April Levels: Here’s What Happened Last Time
Dogecoin's open interest just plunged to levels not seen since April—a move that historically signals a major inflection point.
What The Crash Means
When traders unwind their leveraged bets this fast, it's a classic sign of a market purge. All that speculative froth gets washed out in a hurry. The last time open interest cratered like this, back in April, it set the stage for a significant price move. The data doesn't lie: extreme contractions in open interest often precede powerful reversals.
The Liquidation Engine
Massive liquidations fuel these crashes. As prices dip, over-leveraged positions get automatically wiped out—a brutal, self-reinforcing cycle that clears the decks. It’s the market’s ruthless way of resetting sentiment, often while Wall Street analysts are still adjusting their spreadsheet models. This mechanic creates a vacuum of positioning, a coiled spring waiting for a catalyst.
History’s Playbook
Look at the April precedent. A similar open interest collapse acted as a contrarian launchpad. Once the weak hands were flushed, the path was cleared for a sustained rally. The pattern is clear: extreme fear and capitulation in the derivatives market frequently mark local bottoms, not tops. It’s the old market maxim—be fearful when others are greedy, and greedy when they’re cleaning up margin calls.
The Bottom Line
This isn't just noise; it's a measurable reset of market leverage. While traditional finance frets over quarterly earnings, crypto markets can reprice an entire asset class in a weekend. For Dogecoin, a return to April's open interest levels might just be the reset button it needs. Watch the charts, not the talking heads.
Where The Dogecoin Open Interest Is Sitting
Coinglass data points out how much the Dogecoin open interest has declined in recent times, after hitting new all-time highs back in the fourth quarter. The all-time high open interest for the cryptocurrency sits firmly at the $6.01 billion that was recorded back on September 13, showing the stark difference between where it was and where it’s sitting at right now.
The data aggregation website shows that the Dogecoin open interest is currently sitting at $1.8 billion, which shows a 70% decline over the last three months. The last time that the open interest was this low was back in April 2025, following Donald Trump’s tariff wars.
Crypto analyst KrissPas also highlights the dogecoin open interest performance over this time, showing times where it has spiked this year. So far, the DOGE open interest has crossed the $5 billion mark a total of three times, but each time has ended up in a major crash.
KrissPax explains that the crash in open interest triggered by massive liquidations was a result of different developments. The first of these was the Donald TRUMP tariff announcements that triggered a major market crash. Next were exchanges and market makers, who inevitably triggered the second and third liquidations before the legendary October 10, 2025, crash.
There Is Still Hope
While the current trend points toward further decline in the Dogecoin price, historical performance suggests that it could bounce quickly. Looking back at the times when the Dogecoin open interest had trended this low, the resultant MOVE has always been more of a bullish run.
This was the case following the April 2025 low, leading into another recovery that saw the price move from below $0.2 to $0.25 before the momentum weakened. Then again, a similar trend was recorded following the July 2025 low, with the dogecoin price eventually rallying from below $0.2 to reach $0.29 before momentum ran out.
Going by the previous trend of at least a 20% increase in price following the open interest hitting a low, it could mean that the Dogecoin price could see another foray above $0.15. However, this also depends on the bitcoin market performance and how the broader crypto market responds.
