Dogecoin Dropped 14% in the Sell-Off, But Futures Traders Aren't Panicking

A Rough Few Days for Dogecoin

It hasn't been a fun week for DOGE holders. Dogecoin dropped around 14% as the broader crypto market sold off hard, with Bitcoin slipping under $81,000 and hundreds of millions in leveraged positions getting liquidated across the board. Meme coins, as usual, got hit especially hard.

Hotter-than-expected inflation data seems to be the trigger here, pushing worries about higher interest rates back onto trading desks and dragging risk assets, crypto included, lower.

But the Funding Rate Tells a Different Story

Here's the interesting part: despite the price drop, futures funding rates on DOGE stayed positive. That usually means more traders are still leaning long than short, even while the price is falling. It's not a guarantee of a bounce, but it does suggest this looks more like a shakeout than full-blown panic selling.

Worth watching whether that funding rate holds — if it flips negative while the price keeps dropping, that would be a very different signal.