Meme cryptocurrency dogecoin (DOGE) recorded a 10% surge on Tuesday, its highest single-day profit since the beginning of April, according to Binance data presented by TradingView. Within a two week course, DOGE has made a considerable leap forward by 25%. This impressive achievement orbits around the theory proposing the eventual usage of the meme cryptocurrency as a payment method through the newly-renovated Twitter platform.
Such a summertime lull beckons, enveloping the crypto space the same way it had been predicted for August. Amid the transient distractions, DOGE continues to show promise, leaving the crypto enthusiasts in high spirits. In the midst of this, Elon Musk leaves no stone unturned in revolutionizing the Twitter space, to the immense delight of the people.
Interestingly, this exact line of thought echoes among the traders whose attention is piqued by the perpetual futures market tied to DOGE. The notional open interest, the dollar value cemented into the active perpetual future contracts, has eventually reached a symbolic $500 million – the record high since April 19. Such statistics has seen a stupendous two-fold increase within the same last two weeks. In relation to DOGE itself, the open interest has catapulted to 6.2B, coming rather close to the former peak of 6.43B witnessed back on April 8.
One cannot overlook the fact that such a glaring rise in open interest coupled with an equivalent increase in price points towards fresh financial influxes into the market. There is a chance it paves the path to confirm a growing upward trend.
Contrarily though, in the current scenario, the open interest average funding rates have depreciated to zero. This presents a standing equilibrium between bullish long and bearish short positions. One could argue that the DOGE bull might need a breather following its recent exemplary performance. A part of the discourse are funding rates, which essentially form the holding costs of long/short positions. When taking positive readings into account, it is evident that dominance lies with the longs.
Nevertheless, it’s clear that DOGE has made significant strides in the market’s interest, showing that a meme currency can hold considerable sway. As summer steers the wheel for a potentially inert crypto space, DOGE marks its territory as the outlier, wrenching the script and standing out as the possible highflyer this season. Whether this is a brief, bullish chapter or a significant industry shift is yet to be seen.
Source: Coindesk
