Dogecoin has begun to trade on the positive side of the market following a bullish trend in its derivatives market which signals rising optimism among traders.
Although the current price of Dogecoin is still relatively low compared to prices seen earlier this year, data from Coinglass shows an uptick in DOGE’s futures activity, sending a potential recovery signal.
13,230,000,000 DOGE in active contracts
Following the prolonged volatility seen over the past weeks, Dogecoin traders had continued to trade cautiously across its spot and derivatives market.
As a result, Dogecoin continued to see a significantly low amount of tokens committed to its active contracts over the period. Nonetheless, there has been a sudden spike in this activity recently as Dogecoin recorded over 13 billion DOGE tokens committed in active contracts.
Per data provided by the source, the Dogecoin open interest had suddenly surged by 6.38% over the last 24 hours. Following this rapid surge in the DOGE futures activity, about 13.23 billion DOGE are currently committed to active futures contracts as of the time of writing.
The spike in the Dogecoin open interest signals rising confidence in the leading memecoin as traders increasingly bet their funds ahead of the next price move.
Dogecoin flips positive
It is important to note that while Dogecoin had spiked notably in its futures activity, its trading price had only shown a modest increase of 0.49% over the same period.
This shows that the asset is back to trading on the bullish trajectory, suggesting that it might be preparing for a major price move following the active participation from futures traders.
Although the Dogecoin derivatives market is currently flashing a bullish signal, its slow price movements still stirs concerns from investors about what’s ahead for the asset.
U.Today Editorial Team
Dan Burgin
