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Data shows the Dogecoin Futures Open Interest has continued to rise, a sign that the price pullback hasn’t discouraged speculative activity.
Dogecoin Futures Open Interest Is Up Almost 64% Over Past Week
In a new post on X, the analytics firm Glassnode has talked about the latest trend in the Futures Open Interest of Dogecoin. The “Futures Open Interest” here refers to a metric that keeps track of the total amount of futures positions related to DOGE that are currently open on all centralized derivatives exchanges.
When the value of this metric goes up, it means the investors are opening up more positions on the market. The total leverage present in the sector usually goes up when new positions appear, so this kind of trend can lead to more volatility for the asset’s price.
On the other hand, the indicator observing a decline suggests the holders are either closing up positions of their own volition or getting liquidated by their platform. Usually, the cryptocurrency becomes more stable following such a trend.
Now, here is a chart that shows the trend in the Dogecoin Futures Open Interest over the last few months:
As displayed in the above graph, the Dogecoin Futures Open Interest has witnessed a huge increase recently, a sign that investors have put up a large number of bets related to the memecoin. Over the past week, the metric’s value has gone from $989 million to $1.62 billion, which implies growth of almost 64%.
Initially, this strong uplift in speculative activity coincided with DOGE’s sharp recovery rally. Investors usually find rallies to be exciting, so they tend to open up more positions on the futures market during them.
Interestingly, though, despite the fact that the Dogecoin rally has gone cool most recently and the price has even registered some pullback, the Futures Open Interest has only continued to move up. “This decoupling suggests persistent speculative positioning, even as price momentum fades – a setup worth monitoring,” notes the analytics firm.
DOGE isn’t the only asset that has enjoyed a boost in speculative activity recently. As Glassnode has pointed out in another X post, XRP has also seen its Futures Open Interest shoot up.
During the same window as Dogecoin’s Open Interest increase, XRP has observed the indicator go up by 41.6%, from $2.4 billion to $3.4 billion. “This sharp increase in leverage coincides with a price rally from $2.14 to $2.48, suggesting elevated speculative activity and growing directional conviction,” says the analytics firm.
DOGE Price
At the time of writing, Dogecoin is trading around $0.236, up more than 42% over the past week.
Featured image from Dall-E, Glassnode.com, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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