Dogecoin Futures Surge Despite Price Dip: Bulls or Bears?
Note: This post may contain affiliate links, and we may earn a commission (with No additional cost for you) if you make a purchase via our link. See our disclosure for more info. The crypto world is constantly changing. This content is for informational purposes only and not financial, legal, or professional advice So, please verify the info on the cryptocurrency provider’s websites.
Despite a recent price pullback from $0.25 to the $0.22-$0.23 range, Dogecoin's futures open interest has dramatically increased from $990 million to $1.62 billion. This surge, a 63.9% jump, signals persistent speculative activity, even as price momentum cools. The price increase from $0.16 to $0.24 between May 6th and May 11th, followed by a minor setback, hasn't dampened trader enthusiasm. Positive funding rates across major exchanges like BitMEX, HTX, Gate.io, Bitget, Binance, and OKX further indicate a predominantly bullish sentiment among futures traders. These rates, though low (0.0100% on some exchanges, slightly lower on others), signify that long holders are paying short sellers a small fee, a condition that can fuel rallies but also become costly if the price drops. Market analyst Rekt Capital highlights that Dogecoin closed above its pre-halving resistance near $0.22, which now acts as support. Maintaining this support level could propel Dogecoin toward $0.27, while a fall below $0.22 might trigger a shakeout of leveraged positions. The situation presents a mixed outlook; strong bullish bias is evident, yet the high level of one-sided positioning increases the risk of a sudden price correction. The coming week's performance around the $0.22 support level will be crucial in determining Dogecoin's short-term trajectory, with volatility expected to remain high.
(Source: https://www.newsbtc.com/meme-coins/price-down-bets-up-dogecoin-open-interest-climbs-to-1-62-billion/)
