Dogecoin’s open interest has been rising in recent weeks, hitting and breaking new all-time highs twice in March of this year. Naturally, memecoin prices reflect the growth in open interest.
This recent bullish momentum has pushed DOGE price above the $0.22 level, a three-year high. But the question is how far this rally can go towards becoming the most dominant meme token.
Dogecoin’s open interest exceeds $2 billion
according to Data from CoinGlass, Dogecoin’s open interest topped the $2 billion mark on Friday, March 29th. At the time of writing, DOGE’s open interest was around $1.96 billion, but it rose to $2.21 billion on Friday, a new record for meme coins.
Open interest is an indicator that measures the total number of futures or options contracts for a particular cryptocurrency (in this case, Dogecoin) in the market at a particular point in time. This provides insight into the amount of money investors are pouring into DOGE derivatives at the moment.
Meme token open interest has been performing quite well since early March. DOGE’s open interest rose to $1.6 billion (a high at the time) earlier this month, but fell below $1 billion by March 20th.
It is worth noting that there is a high correlation between open interest and Dogecoin price, with both rising at roughly the same pace at the same time. Typically, a rise in open interest can signal that the current trend in an asset’s price is continuing.
eventually, Current high open interest For DOGE, this could mean sharp price fluctuations for meme coins in the near future. However, it is difficult to predict which direction this spike in volatility will take Dogecoin’s price, especially since open interest is not the best indicator of trends or price action.
DOGE price overview
At the time of writing this article, dogecoin price It stands at $0.204, reflecting a 4.6% decline over the past 24 hours. The meme token price has struggled a bit since hitting a three-year high, but it has managed to preserve most of last week’s gains.
According to data from CoinGecko, the price of Dogecoin has increased by a whopping 18% in the past seven days. This strong performance strengthens DOGE’s position as the largest meme coin on the market, with a market capitalization of $29 billion.
Dogecoin price sees slight correction on the daily timeframe | Source: DOGEUSDT chart on TradingView
Featured images from Pexels, charts from TradingView
