16,710,000,000 DOGE: Flat Open Interest Volume Stirs Doubt

Despite the sudden shift in market sentiment that saw the price of DOGE retrace sharply by nearly 2%, the leading meme token has seen its derivatives market remain negative, according to data from CoinGlass.

The data shows that Dogecoin traders have committed about 16.71 billion DOGE tokens to its derivatives market, suggesting a rise in speculative activity around the leading meme-based cryptocurrency.​

Dogecoin still headed for breakout?

Open interest volume shows the total value of outstanding derivatives contracts, such as futures and options, that have not yet been settled. A surge in this metric signals growing confidence among investors about the token’s price potential, hence they have decided to commit more funds to the asset’s derivatives market.

Unfortunately, this is not the case for Dogecoin this time, as the asset has seen the value of its outstanding futures contracts decline to $3.83 billion on Sept. 27, a decline of 1.23% over the last 24 hours.

The decline in DOGE’s derivatives activity has spurred uncertainty among investors as the token has remained in deep reds for the most part of last week.

While it has shown a slight resurgence in its price over the last day, showing a 1.49% increase to a decent $0.2291 as of writing time, investors are worried about the sustainability of the ongoing price resurgence. Data from CoinMarketCap shows that the asset has reached a high of $0.2342 today after hitting an intraday low of $0.222.

Although the rapid surge witnessed in the last day might be signaling renewed interest in the asset, the plummeting open interest volume has raised concerns among market watchers that the latest price bounce may be short-lived.

Despite the brief DOGE price rally, a sustained decline in the asset’s derivatives activities poses a threat to its expected breakout. This could see the token face more selling pressure, possibly pushing the token into its bear phase.

However, a potential resurgence in Dogecoin’s open interest volume accompanied by the growing buzz surrounding the recent launch of the DOGE ETF would mean further price surges for the token. Apparently, this could push the token to reclaiming previous highs and setting new targets.