3,030% Netflow Change Volatility Rocks Dogecoin Amid Sentiment Shift, What's Next?

Dogecoin futures netflow fell as much as 3,030% in the last 12 hours as the market saw increased volatility in this time frame.

According to CoinGlass data, Dogecoin futures netflows have fallen across most hourly time frames, as traders cut positions amid a defensive stance on the markets.

Dogecoin fell for three days straight, reaching a low of $0.091 on March 19. Elon Musk's "Dogefather" post featuring an AI-generated video created via Grok failed to lift the price yesterday, with Dogecoin continuing its decline.

On March 19, Tesla CEO Elon Musk reposted an AI-generated video on X, in which his avatar was holding a Shiba Inu dog from which Dogecoin's logo draws its inspiration.

Musk's avatar says playful lines drawn from the character Vito Corleone's (played by Marlon Brando) dialogue in the opening scene of the iconic Hollywood film "The Godfather" (1972): "You come to me on the day of my $DOGE's wedding and you ask me for my private key. Are you even a friend? You don't even think to call me the DOGEfather?"

Traders stay defensive

At the time of writing, Dogecoin was little changed in the last 24 hours, up 0.23% in the last 24 hours to $0.0935, but down 6.99% weekly.

The futures market is suggesting defensive positioning, with various metrics in red. Dogecoin's open interest fell 5.9% in the last 24 hours to $1.02 billion. Dogecoin's volume in derivatives also fell in this time frame by 28.04% to $1.74 billion.

In the last 12 hours, Dogecoin saw more futures outflow, according to CoinGlass data. This came in at $234.16 million, while futures outflow came in at $222.08 million, representing a 3,030% netflow drop.

The Fed’s rate-setting Federal Open Market Committee voted 11-1 on Wednesday to leave its key interest rate unchanged, a move that was widely anticipated by investors.