2024-02-29 05:12:50 ET
Dogecoin (DOGE) has witnessed an astonishing price rise of over 29% in the past 24 hours, propelling its market cap beyond $17.5 billion. At press time, DOGE was trading at $0.1272, up 50% in a week.
This rally comes on the heels of a record-setting open interest of $1 billion in DOGE futures, signifying an unprecedented bullish sentiment among traders.
Dogecoin futures hit record $1B open interest
Traders are fervently betting on Dogecoin, with futures temporarily reaching a historic open interest of $1 billion before retracting slightly to $977.649 million at press time.
According to long/short ratio data on Coinalyze , the overwhelming majority, nearly 70%, of these bets are on the long side, reflecting a strong belief that DOGE’s price will continue its upward trajectory.
The surge in open interest, which represents unsettled bets, indicates a substantial influx of new capital into the market.
The surge in bullish bets is not only confined to Dogecoin but extends to other prominent meme tokens like bonk (BONK). These tokens are being strategically utilized by traders as ecosystem bets on their respective blockchains, such as Ethereum and Solana.
DOGE’s remarkable performance, up as much as 40%, outshines major tokens and underscores its relevance in the current market dynamics.
Dogecoin’s future outlook
Technical indicators reveal that Dogecoin’s Relative Strength Index (RSI) has reached the “overbought” level, a signal that suggests a possible trend reversal in the coming days.
Despite this, DOGE’s developers have been proactive in enhancing the network’s security with the recent release of core version 1.14.7.
The introduction of Ordinals on the Dogecoin blockchain further showcases technical improvements, with developers even unveiling popular games running entirely on Dogecoin.
While DOGE’s price surge signals a bullish market sentiment, there are potential risks of a downside correction.
Coinalyze liquidations data highlights that shorts, or bets against DOGE, lost over $40 million in the past 24 hours.
A close eye should be kept on support levels, particularly around $0.120, with the next major support at $0.1065. The market’s response to these levels will be critical in determining the future trajectory of Dogecoin.
The post Dogecoin bulls roar: DOGE futures record $1 billion open interest appeared first on Invezz
