Dogecoin (DOGE) is experiencing a trading frenzy, with futures open interest surpassing $3 billion, and the price rising to $0.25, marking a daily increase of 4.1% and a nearly 4% growth in market capitalization. This wave of buying has increased the risk exposure in derivatives, making DOGE the focus of the market once again.
Open interest exceeds $3 billion
Data shows that futures traders have invested approximately 14.4 billion DOGE positions in a single day, aligning with the open interest reading of $3.41 billion when the price was close to $0.25.
This number is astonishing as it indicates a significant amount of Dogecoin is in open contracts, not just in spot wallets. This marks a resurgence in trader confidence, as new funds entering the market are typically accompanied by an increase in both open interest and price.
In the past 24 hours, whales have purchased 1 billion DOGE (approximately $200 million), and this massive accumulation has pushed Dogecoin up over 11.2% in the last day, with the current price hovering around $0.25.
Bullish technical outlook
The hourly chart for Dogecoin has formed a bullish flag pattern, with DOGE forming a golden cross (50-day SMA crossing above 200-day SMA) for the first time since November. Historically, this pattern is often accompanied by significant increases, such as a 130% surge by the end of 2024. Currently, DOGE remains above the 30-day SMA, with an RSI of 57, indicating there is still room for upward movement.
Technical analysis predicts the price could rise to $0.26 (+18%), and if it breaks $0.28, it may further surge to $0.35.
ETF Boom: Is Dogecoin going to the moon?
Institutional investors are optimistic about the approval of a Dogecoin ETF, with the probability of a spot DOGE ETF being approved by the end of 2025 raised to 90%, thanks to a cryptocurrency-friendly regulatory environment. If the ETF is approved, it will significantly enhance DOGE's exposure in mainstream markets, combined with whale buying, technical breakthroughs, and retail enthusiasm, potentially ushering in a new bull market for Dogecoin.