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- Dogecoin’s open interest reaches a record-breaking $1.4B as the meme coin surges.
Dogecoin (DOGE), the leading meme coin in terms of market capitalization, has skyrocketed 95% in the past week.
However, this surge has also coincided with a record-breaking $1.4 billion in open interest on Dogecoin futures, raising concerns about excessive optimism among traders.
Some analysts believe that Dogecoin is a crucial player in altcoin bull runs, citing its historical performance and position as a top-10 cryptocurrency by market capitalization.
See Also: Solana’s Weekly DEX Volume Surpasses $11B, Hitting Record High
Additionally, technical analysts point to similarities between the current price action and past periods of explosive growth for DOGE.
However, the unprecedented level of open interest in Dogecoin futures suggests excessive leverage as traders speculate on potential drastic price movement, as similar situations in the past have been followed by high volatility.
Analyzing the perpetual funding rate, a key indicator of leverage demand, reveals that DOGE futures are currently experiencing their highest funding rate in over 18 months.
While this suggests bullish sentiment, it’s important to note that this metric alone doesn’t necessarily signify an unhealthy market.
Furthermore, other major cryptocurrencies like Bitcoin and Solana are also experiencing elevated funding rates.
Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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