Dog Coin (DOGE) Funding Rates Turn Negative, Meme Coin Market May Come Under Pressure

As the Meme Coin market as a whole slumps, the largest Meme Coin, Dog Coin (DOGE), is starting to attract short bets.Coinalyze data shows that Dog Coin's funding rate has begun to turn negative since Tuesday, hitting -0.0027% as of Thursday to reach levels not seen since October 2023.Coinalyze data shows that Dog Coin's funding rate has begun to turn negative since Tuesday, hitting -0.0027% as of Thursday. Funding rates are periodic payments made by traders based on the price difference between the futures and spot markets. While these rates are not unusually large, if they continue to fall while prices are falling, they indicate a bearish market sentiment. Over the past week, DOGE has fallen 12%, erasing all of its gains since March. Additionally, the number of open contracts for dogcoin fell from nearly $800 million on Monday to $611 million on Thursday, also indicating a drop in demand for the currency.Meme Coin Marketplace tokens are losing as much as 40 percent in seven days, and traders are warning of a possible shift away from riskier tokens to bitcoin and stablecoins.