In recent times, the open interest in Dogecoin has been steadily increasing, and on the occasion of the ten-year anniversary of the meme coin, the open interest reached a new six-month high at this time. As of Wednesday, December 6, open futures interest reached a total of $625 million, demonstrating the significant amount of interest that the meme coin has been receiving just recently.
The Open Interest in Dogecoin The open interest in Dogecoin had a significant increase during the months of October and December, after the beginning of a consistent price increase. This occurred at a new six-month high. The amount of open interest increased from around $240 million in August to as much as $625 million by the beginning of December as a result of this.
As Bitcoinist has observed in the past, this consistent rise in open interest may be an indication that a price surge is on the horizon. It is a sign that more investors are placing bets on the price of the digital asset, and while the outcome might be either positive or negative, it is also a demonstration of the fact that many people are keeping a watch on how the price of DOGE is performing.
Additionally, the past performance demonstrates that there has been a gain in price, which often occurs when there is an increase in open interest, and DOGE has not failed this time around because of this. The price of DOGE has increased from $0.084 to as high as $0.1 after the first report from Bitcoinist, but it has now made a correction back down to its previous level. This indicates that the price of Dogecoin is following its historical performance, and the rise in open interest is a sign that the coin is headed in the right direction.
The last time that the open interest in Dogecoin reached this level was in April of 2023, and as is customary, the price of the cryptocurrency had increased in sync with this statistic the whole time. On the other hand, taking into consideration the price performance that followed the surge in April 2023, it is possible that the news may not all be positive for the price of DOGE moving ahead.
When looking at past performance, it is important to consider the instances in which the performance has ended in a negative trend. This is because the historical performance indicates that the performance will be bullish. When the open interest started to lose momentum in April of 2023, here is an example of this phenomenon. The consequence of this was a precipitous drop in price.
According to statistics provided by Coinglass, the open interest in Dogecoin has already begun to decrease. The data indicates that it decreased by 10% between Wednesday and Thursday, despite the fact that there was a slight increase of 1.89% on Friday. In comparison to a bullish trend, this may indicate a greater negative impulse than a bullish trend. It is possible that the price of DOGE will revert to $0.08 if this outcome occurs.
On the other hand, if the positive trend continues in the same manner as it did in October 2022, when the price climbed from $0.06 to $0.15, the price of DOGE might build a surge of one hundred percent from this point on. The fact that the price of the meme coin would be slightly below $0.2 would validate the forecasts of analysts that a positive surge is on the horizon for Dogecoin cryptocurrency.
