Bullish gathering! Dogecoin (DOGE) $1.62 billion bet, is the market about to explode?
According to on-chain data provider Glassnode, this week, the open interest in Dogecoin futures jumped from nearly $990 million to $1.62 billion. Previously, the price of Dogecoin had fallen from around $0.25 to the $0.22-$0.23 range.
This indicates that even as momentum weakens, traders are still heavily betting. In mid-February, the open interest in Dogecoin fell below $900 million in April, after briefly rising above $0.23, it began to decline. This week's surge breaks the previous trend.
Reports indicate that the price of Dogecoin rose from about $0.16 on May 6 to slightly above $0.24 on May 11. The price surged significantly in just a few days. Subsequently, it pulled back to the $0.22 to $0.23 range. Traders overall have seen higher highs and higher lows. They firmly believe the uptrend remains solid.
The financing rates have remained in positive territory, indicating that futures traders mostly hold long positions. Coinglass data from May 13, 2025, shows that the financing rates for BitMEX, HTX, Gate.io, and Bitget are at 0.0100%.
The financing rates for Binance and OKX are slightly lower, at 0.0036% and 0.0034%, respectively. These figures mean that long holders need to pay a small fee to shorts. This setup can drive prices up. However, if prices decline, these traders may incur high costs.
Overall, the intertwining of rising futures markets and moderate pullbacks creates a tense situation. On one hand, the market remains bullish. On the other hand, excessive unilateral positions may trigger market turbulence.
Traders will focus on Dogecoin's weekly closing price around $0.22 to determine if its support level holds. If it holds, it may rise to $0.27. If it does not hold, the bears may gain the upper hand, pushing prices down. Regardless, as Dogecoin continues its rollercoaster-like volatility, volatility may continue to rise.
