Dogecoin (DOGE) traders are showing early signs of accumulation after a market-wide liquidation spree last Friday, caused by a tariff standoff between the United States and China.
The highest-ranked memecoin by market cap dropped 5% as its value tanked from a weekly high of $0.28 to settle near the $0.20 mark, following the downward trend of the broader crypto market after President Donald Trump slapped 100% tariffs on Chinese imports.
DOGE’s futures market was hit particularly hard as leveraged positions unwound, though subsequent trading desk data suggests the token may be treading towards a short-term base.
Selloffs drags DOGE price below $0.20
According to data from TradingView, DOGE was trading in a volatile $0.0117 (6%) range between $0.21 and $0.20 from Tuesday at 21:00 to the time of this publication. Trading activity spiked to 568.6 million during an early Thursday-morning rally to $0.21 before sellers regained control.
During Friday’s market bloodbath, the heaviest wave of liquidation occurred between 13:00 and 15:00 UTC, with turnover reaching 920 million as prices broke below the $0.21 support level downwards to $0.18.
When DOGE fell to $0.20 on 12 million volume, a potential exhaustion point for sellers, the price later stabilized near $0.20 into the daily close with diminishing volume. Institutional trading desks also reported buying interest near the $0.20 handle, which could mean some funds are anticipating a rebound.
Derivatives open interest returns to September levels
The open interest (OI) in Dogecoin futures reached a high of around $6.5 billion on September 14 and then declined slowly until the end of the month, according to data from the derivatives analytics platform CoinGlass.
By September 26, open interest had fallen to around $3.8 billion, briefly stabilizing before another upturn in early October, when it recovered to roughly $5 billion by October 8.
After Friday’s bludgeoning liquidation event, open interest tanked below $3 billion by October 15, a level last seen in early September. According to some analysts, the reset could mean a significant amount of leveraged exposure has been cleared from the market, a necessary condition for establishing a price floor.
DOGE’s spot price trend also follows the drop in OI, sliding from $0.27 in early October to around $0.20 as of October 16. When OI contracts and token values drop simultaneously, but the prices stabilize, it can imply traders are closing short-term bets to build up new positions.
House of Doge Nasdaq debuts
Beyond its short-term volatility, Dogecoin investors are hoping the public listing of House of Doge, a company advocating for Dogecoin’s utility in mainstream payments, will flip the sentiment bullish in the coming weeks.
As reported by Cryptopolitan, House of Doge is preparing for a $50 million Nasdaq debut via a reverse merger with Brag House Holdings, a college-focused gaming company. The merger will allow House of Doge to trade publicly on Nasdaq.
The company is backed by several venture capitalists including Alex Spiro, attorney for Tesla CEO Elon Musk. “Being a publicly traded company allows us to scale with all the capital we would need to make sure that the utility behind Dogecoin comes full circle,” House of Doge CEO Marco Margiotta said in a recent interview.
According to crypto trader BitGuru, DOGE’s support lies around the $0.18 to $0.19 region, where heavy buying activity was observed during liquidation troughs. Bears are defending the price zone between $0.21 and $0.214, defined by the earlier reversal volume.
The memecoin is trading below its 200-day moving average, but the recent reduction in volume and stabilization at $0.20 suggest that price compression could lead to base-building. Market watchers noting that a clear reclaim of $0.21 might kickstart a buying momentum to lift prices toward $0.22–$0.28 levels seen on October 8.
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