Traders are taking bold bets on DOGE, driving its price sharply higher, even as the market leader bitcoin's rally stalls, with the token's price rising nearly 10% over the past week to reach $0.105. The surge in open interest in DOGE futures to 15.36 billion tokens, the highest level this year, suggests that traders are increasingly seeking leveraged positions. This upswing in open interest, combined with the rising spot price, indicates that new investors are entering the market, reinforcing the prevailing bullish trend in DOGE.
However, this increased exposure also leaves the market more vulnerable to sharp liquidations if momentum reverses. Various exchanges, including Binance, Bitget, Bybit, and OKX, are contributing to the growth in open interest, with each holding over 1 billion DOGE. Market observers attribute the demand for DOGE to several factors, including the addition of large holders, the listing of a physically backed ETP, and increased on-chain activity.
The token's historic tendency to respond quickly to spot accumulation, derivatives leverage, and retail narratives is also driving the current rally. While the payments angle remains a significant factor, it is the least concrete aspect of the DOGE trade, with traders possibly reacting to payments-related developments at Musk-owned companies in anticipation of potential support for the token.