DOGE signals a potential shift in direction after a recent trend of increasing open interest. The meme token is still hovering under $0.10, but sparks hopes of a breakout.
DOGE open interest climbed to over $629M on all markets, with a strong increase in positions on Binance.
The token traded at $0.098 in the past day, reaching a net growth of 8.5% for the past month. The coin also briefly rose above $0.10 for the first time in 10 days.
The recent sudden increase in open interest suggests DOGE may make a more dramatic move, driven by derivative traders. The meme coin also shows signals that it is not entirely forgotten, and may still spark a more active period of trading.
Binance led the expansion in open interest for DOGE, adding $100M in the past five days. From April 23 onward, DOGE open interest rose to 3.23B coins, up from 2.31M coins.
The recent DOGE price growth does not match the sudden increase in open interest. In the past few weeks, DOGE saw several accumulations of open interest before a subsequent liquidation. The recent rise in open interest is thus still a risky short-term move, and not a sign of a sustainable recovery.
DOGE is still in waiting mode
Based on its relative strength index (RSI), DOGE is in waiting mode. The legacy meme coin is rising based on its own sentiment, while other meme assets are still stagnating.
The DOGE RSI index still climbed in the past 24 hours to over 55 points, showing a potential scenario of returning investor interest. DOGE is in the middle of the range in terms of RSI, tracking the sentiment of BTC. The token, however, is showing higher demand compared to even XRP and SOL.
DOGE also does not move based on mindshare, as it is a relatively old legacy asset with both mainstream and crypto-insider exposure. The recent rise in open interest does not coincide with hype on social media.
DOGE remains bound in a range
DOGE trades similarly to legacy altcoins and memes that are no longer leading in mindshare. The asset still has an active derivatives market, where directional bets can make gains.
Based on the Binance liquidation heatmap, DOGE is in a range between $0.094 and $0.104. A short squeeze may only move the price above $0.10 before positions are closed or liquidated.
For now, the DOGE price action has not caused significant liquidations and is not among the most liquidated tokens. Overall, DOGE is showing silent action behind the scenes.
DOGE has not been affected by the recent Litecoin reorg, reported by Cryptopolitan. The attack has not diverted any DOGE for spot trading, only affecting limited LTC use cases.
The recent DOGE hike above $0.10 follows a recent whale accumulation, where $2.5B worth of DOGE moved out of Robinhood and into private wallets. Additionally, 26B DOGE moved out of the Upbit hot wallet and into other markets. DOGE still has around 29K daily active users and has been used as a tool to move funds between exchanges.
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