SNEAK PEEK
- Dogecoin surges 10% amid rumors of acceptance on Twitter’s rebranded platform.
- Notional open interest for DOGE has doubled, surpassing $500 million since April.
- Despite the bull-run pause, long positions remain dominant, suggesting continued DOGE growth.
In a surprising move, Dogecoin, the popular meme cryptocurrency, shot up by 10% on Tuesday. According to data from Binance on TradingView, this marks its most significant one-day percentage rise since April 3. Over the past fortnight, the cryptocurrency has enjoyed a 25% boost.
The speculation that Twitter’s rebranded platform may accept DOGE as a payment mechanism drives this remarkable growth. Consequently, while other cryptocurrencies lay low during the summer lull, DOGE is flying high.
Per Markus Thielen, head of research and strategy at Matrixport:
As crypto enters the summer lull we initially expected for August, DOGE might be the summer’s highflyer.
On the same note, Thielen’s sentiment appears to be mirrored by traders, as shown by the increased activity in the perpetual futures market connected to DOGE.
In parallel with DOGE’s price increase, the dollar value held in active perpetual futures contracts – known as notional open interest – has skyrocketed. For the first time since April 19, it’s topped the $500 million mark, as per Coinglass. Significantly, this figure has more than doubled in just two weeks, with the open interest in DOGE terms surging to a whopping 6.2 billion.
This growth in both open interest and price signals a rush of new money into the market, cementing the upward trend. However, the current equal footing between bullish long and bearish short positions, as indicated by the zero-weighted funding rates, suggests a pause in the bull run.
In conclusion, while DOGE may take a breather after its recent stellar performance, the cost of holding long/short positions—or funding rates – remains positive. This implies that long positions are still dominant. Hence, while the summer heats up, Dogecoin seems set to continue making waves in the crypto world.
