In the face of a nearly 4% price drop in the past week, Dogecoin DOGE/USD investors have demonstrated unwavering interest, pouring over 15 billion DOGE, or approximately $3.42 billion, into the derivatives market in the last 24 hours.
What Happened: A significant open interest in Dogecoin, pointing to a bullish sentiment among investors. Open interest is a measure of the total value of outstanding active futures contracts that investors have committed to Dogecoin.
Data from CoinGlass shows that Gate investors were at the forefront, with a total open interest of 3.29 billion DOGE, valued at $750.20 million.
This accounts for 21.92% of the total open interest. Binance was a close second with 20.13%, as investors committed 3.03 billion DOGE worth approximately $688.92 million.
Bybit, OKX, and Bitget rounded out the top five, with respective commitments of 2.05 billion DOGE, 1.71 billion DOGE, and 1.58 billion DOGE. These commitments are valued at $467.01 million, $388.56 million, and $358.71 million in fiat currency.
Also Read: Dogecoin Set To Soar 2,600% and Hit $1 Trillion Market Cap, Says This Crypto Analyst
Alongside the rise in open interest, there has been an increase in whale activity, with a large holder transferring 400 million DOGE from Robinhood, indicating potential accumulation moves in anticipation of a bullish rally.
Disclosure: 82% of retail CFD accounts lose money
Despite the recent dip in price, the open interest figures ignite hopes for a potential recovery. Should Dogecoin bounce back, market participants are likely to set their sights on the $0.30 price level, as previously hinted by its technical indicator.
Why It Matters: The surge in open interest and whale activity in Dogecoin, despite its recent price decline, indicates a strong belief among investors in the cryptocurrency’s potential for recovery.
This bullish sentiment, coupled with the significant amount of capital committed to the derivatives market, suggests that investors are positioning themselves for a potential rally in the near future.
The movement of a large amount of DOGE from Robinhood further fuels this speculation, hinting at possible accumulation moves in anticipation of a price surge.
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Image: Shutterstock/alfernec
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