Dogecoin Price Stabilizes as Open Interest Signals Market Reset

Dogecoin (DOGE) is showing signs of stabilization after experiencing seven consecutive days of price declines between January 14 and January 20. Following this sell-off, Dogecoin’s price has entered a consolidation phase, trading within a narrow range between $0.12 and $0.129 since January 20. This sideways movement suggests that selling pressure may be easing, allowing the market to reset after a volatile week.

This stabilization is also visible in the derivatives market. According to CoinGlass data, Dogecoin’s open interest currently stands at $1.41 billion, marking a modest 0.2% increase over the past 24 hours. While the rise may appear minor, it is notable in the context of a broader market derisking event, during which leverage was significantly flushed out. The slight uptick in open interest could indicate renewed confidence among traders and a potential foundation for Dogecoin’s next price move.

Despite these early signs of balance, Dogecoin remains under pressure in the short term. At the time of writing, DOGE is trading at approximately $0.1242, down 0.3% over the last 24 hours and nearly 10% on a weekly basis. The broader cryptocurrency market is also largely in the red, with around $292 million in liquidations recorded in the past day, according to CoinGlass. This cautious market sentiment reflects ongoing uncertainty as traders await macroeconomic signals.

One major catalyst on the horizon is the U.S. Federal Reserve’s interest rate decision scheduled for January 28. While markets widely expect rates to remain unchanged, any deviation from expectations could introduce fresh volatility across risk assets, including cryptocurrencies. Current projections suggest only two quarter-point rate cuts may occur in 2026, keeping monetary conditions relatively tight.

On the fundamental side, Dogecoin continues to gain institutional and ecosystem momentum. Cyber Hornet recently filed for an S&P Crypto 10 ETF that would include Dogecoin, potentially marking the first S&P-linked spot crypto basket. Meanwhile, the 21Shares Dogecoin ETF (TDOG) has been listed on Nasdaq, expanding regulated exposure for investors. Looking ahead, the Dogecoin Foundation and House of Doge plan to launch the “Such” app in the first half of 2026, aiming to enhance Dogecoin’s utility and user engagement.