Traders are taking bold risks with DOGE, driving its price sharply upward, even as the market leader bitcoin's rally stalls at $80,040.63. The futures market, where open interest in DOGE futures has climbed to a yearly peak of 15.36 billion tokens, is a clear indicator of this trend, according to Coinglass. This upswing in open interest suggests that traders are increasingly seeking leveraged directional plays, reflecting a strong risk sentiment in the market. Over the past week, DOGE's price has risen by nearly 10%, briefly exceeding 11 cents before settling near $0.105.
In contrast, bitcoin has fallen below $76,000 after trading above $79,000 earlier in the week. The combination of the rising spot price and futures open interest indicates that new investors are entering the market, rather than existing positions being closed, which reinforces the prevailing bullish trend in DOGE. However, this also increases the market's exposure to potential sharp liquidations if momentum reverses.
Binance, Bitget, Bybit, and OKX are among the top exchanges with significant open interest in DOGE, collectively accounting for over 6 billion tokens. Other notable exchanges, including Hyperliquid, MEXC, WhiteBIT, and KuCoin, also show substantial positions, indicating a broad-based move. The rally in DOGE follows weeks of sideways trading and a resurgence of speculative interest in major cryptocurrencies earlier in the week. According to Jordan Jefferson, founder of DogeOS and MyDoge, several factors may be contributing to the demand for DOGE, including the addition of over 500 million DOGE by large holders, the listing of a physically backed ETP on Xetra by 21Shares, and positive flows from Grayscale after nine consecutive days of outflows.
On-chain activity has also increased, with active addresses rising by 28%. These flows are significant, as DOGE's market structure tends to respond quickly when spot accumulation, derivatives leverage, and retail narratives align. Historically, DOGE has traded more like an attention-driven macro meme, where positioning can accelerate rapidly once traders believe a familiar catalyst is back in play.
The potential payments angle, particularly with Elon Musk's announcement of X Money, remains a significant factor, although there is no clear indication of support for dogecoin or any crypto functionality. Nevertheless, DOGE traders may be reacting to the payments-related developments at Musk-owned companies, possibly in hopes that the token could eventually be integrated into X's financial stack, given Musk's vocal support for dogecoin since 2021.