Key Insights :
- The number of open Dogecoin futures contracts doubled as investors bought more and traders grew more bullish on Dogecoin.
- A “Cup with Handle” pattern confirms a technical breakout, sending DOGE up 34% when Bitcoin dropped.
- Over 60 percent of transactions on DOGE come from speculation and buying from interested communities, rather than DeFi.
DOGE has seen its futures open interest rise by 64% over the past week. According to Glassnode, the value of the open Dogecoin futures has increased from $989 million to $1.62 billion. A lot of trading is happening now because the meme coin gained 34% in two days.
DOGE was trading at $0.2405, a 2.90% increase in the last 24 hours. Bitcoin’s market valuation stood at $35.93 billion. Over the same period, traders exchanged Bitcoin worth $3.25 billion. This represents a 42.7% rise in transaction volume.
Dogecoin futures attracted higher participation than the other top 10 cryptocurrencies, showing that many are betting on a price increase. Based on analysts, Dogecoin has completed a “Cup with Handle” pattern, which usually indicates the price will move further.
An initial pause frequently follows this setup before the market moves into a bullish trajectory. A smooth, rounded base of the cup signals recovery in the market trend. Before a breakout, a slight pullback—forming the handle—occurs.
The resistance zone is formed around $0.24. Prices moving above the demand zone tell us that the uptrend is gaining pace.
The successful breakout sign on the chart backs this up. If things continue as expected, the structure looks to push prices further up than where they have been before.
DOGE Decouples from Bitcoin Trend, Gains Despite BTC Downturn
Glassnode points out that Dogecoin’s recent rise happened as Bitcoin prices decreased. These two coins’ price paths are lost on each other, with DOGE up 34% while Bitcoin has suffered losses recently.
Altcoins almost always closely track Bitcoin’s moves, but with more intense volatility. Even so, traders are focusing on Dogecoin-specific trends, showing DOGE is not moving in the same way it did before.
Such market trends show that DOGE has always been driven by social media, the involvement of its community, and cultural influences. They also point out that the token can attract notice even when the market dips, making it different from other options.
According to data from DeFiLlama, Dogecoin is not a significant force in decentralized finance but is gaining ground. DOGE-operated protocols now hold $4.56 million, reflecting a 10.77% rise in the past day.
Daily market fees and revenue total $4,408. This growth indicates increasing activity within DOGE-related ecosystems. DOGE is proving its utility beyond simple transactions.
This means the focus is more on speculation, rather than strong use case-driven progress. Decentralized finance (DeFi) has yet to gain widespread adoption. Meanwhile, most crypto traders still favor centralized exchanges and futures markets for trading and derivatives.
Trading Sentiment Intensifies with High Volume
Traders are joining the market in bigger numbers as volume soars as the Dogecoin price increases. Liquidity is higher now, as the volume-to-market cap ratio is 9.06%.
Despite ongoing inflation, the total and circulating supply of DOGE remains at 149.37 billion. This indicates continued interest from traders in the token.
Data from futures indicates that traders are increasing their exposures, which is boosting market volatility. Because of the strong open interest observed, the market will likely experience both quick profitable moves and fast falls.
A mix of more open interest, a higher price, and a confirmed technical breakout shows that DOGE could soon be in for a bull run. The massive jump in futures open interest on Glassnode indicates that traders are flocking to continue the rally.
Even so, because there are $1.62 billion worth of leveraged futures on the line with DOGE, volatility should remain high.