Dogecoin has seen a significant increase in its futures trading volume, indicating renewed interest among investors. However, DOGE price is still lagging and hovering just above the psychological level of $0.10, amid the broader downward trend in the crypto market.
Dogecoin sees a 53,000% increase in futures trading volume
CoinGlass data shows that Dogecoin futures trading volume on BitMEX increased by a whopping 53,000%, reaching just over $260 million. The top meme coin has also seen its chance futures trading volume other major exchanges such as Kraken, Binance and Bybit have risen over the past 24 hours, providing a bullish outlook for DOGE. This has led to a 10% increase in trading volume across all exchanges, to $2.6 billion.
Related reading: Dogecoin Reclaiming $0.128 Support Could Mean Perfect Long Position Opportunity
Notably, the Dogecoin long/short ratio has risen to 0.9 over the past 24 hours, indicating that more traders are betting on a possible DOGE price rise. Meanwhile, the long/short ratio on Binance stands at 2, indicating that most Binance traders remain bullish on the top meme coin. This development comes as the crypto market anticipates a potential ‘Santa rally’ to end the year.
This could provide some relief for Dogecoin, which has been in a massive downtrend since the October 10 crash. The meme coin is now down more than 58% year-to-date (YTD). The DOGE price also lagged despite the surge in futures trading volume. The meme coin keeps mirroring Bitcoin’s price actionwith the flagship crypto currently struggling to rise above $90,000.
The DOGE price has also lagged behind as a result of the disappointing launch of the Dogecoin ETFs. SoSo value data shows that the funds are still failing to record net inflows, with zero flows recorded over the past eight trading days. Trading volume for these funds was also low during this period.
What’s next for the DOGE Prize?
In one X messagecrypto analyst Kevin Capital stated that a clawback of $0.138 for the DOGE price at the 3-day to 1-week close would put it back above the .382 macro and the 200-week SMA. The analyst noted that this would be a big positive and would likely be in line with the situation the Bitcoin price regaining the $88,000 to $91,000 zone, which needs to happen.
Kevin Capital further revealed that DOGE price continues to trade around this “DCA” zone in the meantime. Analysis of the 2-week chart, crypto analyst Trader Tardigrade stated that Dogecoin appears to be approaching the end of its pre-peak phase. His accompanying chart showed that the meme coin may still rise to $6 when the parabolic wave begins.
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At the time of writing, the Dogecoin price is trading around $0.13, down in the past 24 hours, according to facts from CoinMarketCap.
Featured image of Pngtree, chart from Tradingview.com