In recent weeks, the investment interest in Dogecoin, a favored cryptocurrency that has seen its reputation and value grow, has climbed at an unprecedented rate. Notably, on two occasions this past March, Dogecoin shattered its previous records, generating new ones. Unsurprisingly, the price of the coin has mirrored the expansion in its open interest.
Carried on the wings of this bullish momentum, Dogecoin’s value soared past the $0.22 threshold—it’s acme in three years. Yet, the question looming over the market now, is just how far can this surge extend for the leading cryptocurrency that commenced as a jest?
Drawing from information contributed by CoinGlass, last Friday, March 29, the open interest in Dogecoin pierced the $2 billion ceiling. In spite of the fact that, at the time of reportage, Dogecoin’s open interest had dropped slightly to approximately 1.96 billion—it had hit a record-breaking high of $2.21 billion earlier on Friday.
Open interest, which gauges the aggregate number of futures or options contracts of a given cryptocurrency that exist in the market at any particular juncture, grants an insight into the volume of investments being channeled into Dogecoin derivatives currently.
Dogecoin’s open interest has made quite a commendable journey since the arrival of March. Earlier this month, it climbed to $1.6 billion, surpassing all previous records, but reduced to below $1 billion by March 20th.
It’s also noteworthy that there has been a significant parallel between open interest and Dogecoin’s price. Both attributes have risen concurrently and at a similar pace. More often than not, an escalating open interest may be indicative of a persistence in current price trends.
Conclusively, Dogecoin’s heightened open interest could precipitate a swift price movement for the coin in the near future. However, it’s difficult to predict the direction of this impending volatility or the effect it could have on Dogecoin’s price, especially since open interest is far from being the best predictor of price trends.
As it stands today, the price of Dogecoin is currently $0.204, depicting a 4.6% drop in the past 24 hours. Despite the token experiencing turbulence since reaching its three-year peak, it has impressively held on to most of its gains from the past week.
As per data from CoinGecko, Dogecoin’s price has risen by an enviable 18% in the last seven days. This impressive track record has fortified Dogecoin’s standing as the premier coin that was initially birthed from a meme, with a market capitalization of $29 billion.
All in all, it appears Dogecoin has experienced a slight correction, arriving by way of minutely declining token prices. However, with continued interest and volatility, it looks like Dogecoin is here to stay.
