Dogecoin Open Interest Increases, What Impact on Price in May 2025?

Updated
May 15, 2025
Gambar Dogecoin Open Interest Increases, What Impact on Price in May 2025?

Jakarta, Pintu News – Despite the decline in the Dogecoin price, recent data shows that open interest for Dogecoin futures continues to rise. This indicates that the price drop has not been able to reduce speculative activity in the market. Analysis from Glassnode, an analytics firm, reveals that despite the price drawdown, the number of bets on Dogecoin is still growing.

Futures open interest, which measures the total open futures positions across all centralized derivatives exchanges, is an important indicator in understanding market sentiment. A rise in the value of this metric indicates that more investors are opening positions in the market, which can increase the volatility of the asset’s price.

Open Interest Increase Analysis

In the past week, Dogecoin (DOGE) futures open interest has jumped nearly 64%, from $989 million to $1.62 billion. This increase coincided with a sharp recovery in the Dogecoin price, which often attracts more speculative activity in the futures market. Investors tend to be attracted by rallies and open more positions during such periods.

Interestingly, although the Dogecoin (DOGE) rally has subsided and the price even showed some decline, futures open interest has only continued to increase. This phenomenon suggests that speculative positions are persisting, even as price momentum begins to fade. This situation is worth keeping an eye on as it could provide important indications about the next direction of the market.

Also Read: Bitcoin (BTC) Breaks $100K: What are the Hidden Risks Lurking?

Volatility and its Impact on Prices

When open interest increases, it is usually followed by an increase in leverage in the market. Higher leverage can magnify price volatility, meaning price changes can be sharper and more unpredictable. This is a double-edged sword; on the one hand, it can provide huge profits for some traders, but on the other hand, it also increases the risk of large losses.

This volatility is important for investors to understand as it can affect future investment decisions. A deep understanding of how leverage and open interest affect the market can help in formulating more effective strategies to deal with Dogecoin (DOGE) price fluctuations.

Dogecoin Price Outlook

Currently, Dogecoin (DOGE) is trading around $0.236, up more than 42% over the last week. Although there has been a significant increase in open interest, it is important for investors to monitor whether this trend will continue and how it will impact the price. A rise in open interest could be an early indicator of a larger price movement.

Investors and analysts should remain alert to possible sudden changes in market sentiment that could trigger unexpected price movements. Monitoring the latest data and trends will be crucial in navigating the volatile Dogecoin (DOGE) market.

Conclusion: The Future of Dogecoin

The increase in Dogecoin (DOGE) futures open interest shows that despite the price drop, interest in the cryptocurrency remains strong. Investors should consider the possible volatility and its impact on their investment strategies. Monitoring market developments and adjusting investment tactics according to changing market conditions will be key in capitalizing on opportunities.

Also Read: GD Culture Group Invests $300 Million in Bitcoin and Trump Memecoins

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

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