As the Christmas holiday approaches, trading activity in the crypto market has noticeably declined. The performance of Dogecoin in the past couple of days offers some clues—open interest is shrinking.

According to on-chain data, over the past day, the open interest in Dogecoin has fallen to $1.51 billion, equivalent to 11.797 billion tokens, a decrease of over 4 percentage points compared to the previous period. This signal is quite clear: traders are generally reducing leverage and risk exposure ahead of the holiday. The entire cryptocurrency market is following this trend, with the total market capitalization dropping below $2.94 trillion.

Regarding price action? Dogecoin has been oscillating between $0.126 and $0.135, essentially consolidating. It reached a high of $0.134 on December 19 but failed to stabilize above that level. At the time of writing, it’s at $0.127, down 1.22% in 24 hours, with a weekly decline of 2.06%. This consolidation may be setting the stage for a breakout after the holiday.

From a technical perspective, attention should be paid to whether it can break through $0.148 on the upside, with support around $0.11 on the downside. The direction will depend on trading volume and market sentiment.

On the macro front, it’s also worth noting that the US Q3 GDP growth reached 4.3%, a two-year high, which could complicate the Federal Reserve’s interest rate policy. The market generally expects interest rates to remain steady until April next year. Changes in these policy expectations will ultimately be reflected in asset prices.