The Dogecoin open interest has been on a steady climb lately and on the 10-year anniversary of the meme coin, the open interest broke a new 6-month high. Open futures interest rose to $625 million on Wednesday, December 6, showing just how much interest the meme coin has been seeing lately.
Dogecoin Open Interest At New 6-Month High
Dogecoin’s open interest saw a considerable spike between the months of October and December after the price began a steady climb. This took the open interest from around $240 million in August to as high as $625 million by early December.
As Bitcoinist previously reported, this steady increase in the open interest could signal a price rally is coming. It actually means more investors are betting on the price of the digital asset, and while it could go either way, it is also a testament to many eyes following DOGE’s price performance.
The historical performance also shows that there has been a price increase usually when the open interest rises, and DOGE has not failed this time around. Since the initial Bitcoinist report, the DOGE price has risen from $0.084 to as high as $0.1 before correcting back downward. This suggests that the Dogecoin price is following its historical performance and the increase in open interest heralds good tidings for the coin.
The last time that the Dogecoin open interest was this high was back in April 2023 and like always, the price had risen in tandem with this metric. However, given the price performance that followed the spike in April 2023, it might not all be good news for the DOGE price going forward.
DOGE price recovers to $0.097 | Source: DOGEUSD on Tradingview.com
DOGE Could See A Price Decline
Given that historical performance points toward a bullish performance, it is also prudent to look at the times when historical performance has ended in a bearish trend. A case of this is in April 2023 when the open interest began to lose momentum. As a result, the price declined rapidly.
Dogecoin’s open interest is already seeing a decline, as data from Coinglass shows it fell 10% between Wednesday and Thursday, although there was a small 1.89% uptick on Friday. This could suggest a more bearish impulse compared to a bullish trend. If this happens, then the DOGE price could return to $0.08.
However, if the bullish trend holds similarly to October 2022 when the price went from $0.06 to $0.15, the DOGE price could mount a 100% rally from here. This would put the meme coin’s price just shy of $0.2, validating analysts’ expectations of a bullish rally coming for Dogecoin.