Some nonsense about DOGE
DOGE After 22 months of consolidation, Dogecoin is repeating the explosive rise of the “bull market of the past.”
First, we should note that logarithmic scale price charts tend to minimize past price movements, making it easier to "forget" the 120% increase in July 2020 or the 145% increase in October 2022 and put These are attributed to sideways markets. Additionally, the definition of a bull market may be seriously questioned, as some of these periods include a 67% retracement over a 40-day period between June and July 2017 and a 47% retracement in February 2021.
Regardless of whether the recent 95% weekly gain was the initial stages of a bull market, total DOGE futures open interest has never exceeded $1 billion. In fact, every previous investment above $550 million in open interest has been accompanied by a significant correction in the price of DOGE
Note that Dogecoin’s current open interest is $1.4 billion, significantly higher than its previous peak, yet Dogecoin is trading 77% below its all-time high. Essentially, the data shows that interest in leverage has surged to unprecedented levels, whether measured in dollar value or DOGE. Nonetheless, without further details, we cannot attribute the price increase to retail investors betting on a higher price.
Data shows that the DOGE futures financing rate has risen to the highest level in 18 months at 0.11%, equivalent to 2.3% per week. Typically, a weekly rate above 1% indicates over-optimism
