Renewed Interest in Dogecoin: Understanding the 53,000% Futures Trading Surge and Current Price Trends

Dogecoin has caught the attention of investors, evidenced by a sharp increase in its futures trading volume. However, despite this renewed interest, the price of DOGE remains stagnant, staying just above the crucial $0.10 mark amid the wider decline in the cryptocurrency market.

Key Takeaways

Dogecoin futures trading volume rose by 53,000%, surpassing $260 million.
Despite increased trading activity, DOGE’s price struggles to maintain upward momentum, hovering around $0.10.
Bullish sentiment persists among traders, indicated by rising long/short ratios.
The disappointing launch of Dogecoin ETFs may be affecting price performance.
Analysts suggest that reclaiming $0.138 could signal a potential price rally.

Dogecoin

Dogecoin Experiences a 53,000% Surge in Futures Trading Volume

Recent data from CoinGlass reveals that Dogecoin's futures trading volume surged by an astonishing 53,000% on BitMEX, crossing the $260 million threshold. The popular meme coin has also experienced a significant increase in trading volume on major exchanges like Kraken, Binance, and Bybit over the past 24 hours, which bodes well for DOGE. Overall, this surge has resulted in a 10% rise in trading activity across all platforms, reaching a total of $2.6 billion.

It is important to note that the long/short ratio for Dogecoin rose to 0.9 within the last day, suggesting that a growing number of traders are anticipating a potential price increase. On Binance, this ratio stands at 2, indicating a predominantly bullish outlook among traders of the leading meme coin. This optimism comes as the crypto market gears up for a possible 'Santa rally' to conclude the year.

Though this surge provides potential hope for Dogecoin, it has been on a downward trend since the crash on October 10. Currently, it’s down over 58% year-to-date (YTD). Meanwhile, the DOGE price continues to lag, mirroring Bitcoin's struggles, as the top cryptocurrency faces challenges breaking above $90,000.

The lagging performance of DOGE can also be attributed to the less-than-ideal launch of Dogecoin ETFs. Data from SoSo Value indicates that these funds have not managed to attract net inflows, recording zero movement over the last eight trading days. Consequently, the trading activity for these funds has remained low.

What Lies Ahead for DOGE Prices?

Crypto analyst Kevin Capital recently shared insights on X, indicating that if DOGE regains the $0.138 level on a 3-day to 1-week closing basis, it would surpass a significant macro level and the 200-week Simple Moving Average (SMA). This reclaiming would represent a major positive shift and would likely coincide with Bitcoin's recovery to the $88,000 to $91,000 range.

Dogecoin
Source: Chart from Kevin Capital on X

Kevin further mentioned that in the interim, DOGE’s price is maintaining near a “Dollar-Cost Averaging” (DCA) zone. Additionally, crypto analyst Trader Tardigrade analyzed a 2-week chart and concluded that Dogecoin may be nearing the end of its pre-surge phase, indicating it could surge to $6 once the parabolic movement begins.

As of now, Dogecoin is trading around $0.13, showing a slight decline over the past 24 hours, based on data from CoinMarketCap.

Dogecoin
DOGE trading at $0.13 on the 1D chart | Source: DOGEUSDT on Tradingview.com