Dogecoin
Dogecoin: As Open Interest crosses 3-year high, how did DOGE react?
DOGE’s Futures Open Interest has witnessed a significant surge in the last week.
- DOGE’s Open Interest sat at an ATH at press time.
- This rise came amidst the meme coin market’s recent rally.
Dogecoin’s [DOGE] Futures Open Interest has climbed to its highest level since the 10th of May 2021, when the leading meme coin exchanged hands at an all-time high of $0.6, according to Coinglass.
Source: Coinglass
This rise coincided with a broader rally in the meme coin sector, whose market capitalization has climbed significantly in the last week.
Per CoinMarketCap’s data, the values of other popular meme-based assets like Shiba Inu [SHIB], Pepe [PEPE], dogwifhat [WIF], Floki [FLOKI], and Bonk [BONK] have seen significant increases in the last week.
Within the same period, DOGE’s price climbed by 75% to exchange hands at $0.14, its highest since April 2022.
As of this writing, DOGE’s Futures Open Interest totaled $1.19 billion.
The recent rise in the coin’s Futures Open Interest suggests the entry of new money into its derivatives market.
It also means that more traders are opening new positions or maintaining existing ones.Additional data from Coinglass showed that since the bull cycle began last October, DOGE’s Funding Rates across exchanges have been positive.
When an asset’s funding rates are positive, it means that its holders continue to trade in favor of a price rally. It is deemed as a bullish signal.
More milestones for DOGE
The recent spike in demand for meme coins has resulted in a corresponding growth in DOGE’s social activity.
AMBCrypto found that, at press time, the coin’s Social Dominance and Volume sat at their highest levels since June 2023.
According to data from Santiment, DOGE’s Social Dominance was 3.25% as of the 2nd of March, while its social volume closed the same day at 880.
Source: Santiment
A surge in an asset’s social activity accompanied by a corresponding growth in its price is a bullish signal. It often suggests that the market is not permeated by mere “noise.”
Further, DOGE’s price growth in the past week has pushed its Market Value to Realized Value (MVRV) Ratio to a new high. This was 66.28% at press time, the coin’s highest MVRV ratio since October 2021.
Source: Santiment
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This metric measures whether an asset is overvalued or undervalued.
At 66.28%, DOGE’s MVRV ratio showed that its holders were guaranteed an average of 66% on their investments if they sold at the press time price.
