Dogecoin's Open Interest Zooms Up To $1B, 70% Of Traders Go Long: Can The Rally Last?

Dogecoin’s DOGE/USD bullish sentiment continued with whale movements, high open interest and traders predicting further upward momentum.

What Happened: CoinGlass data reported open interest of $1.08 billion in the past 24 hours, marking a 16% surge, the highest since November 2022 levels. The rise in open interest marks additional money entering the market, creating a bullish sentiment.

Meanwhile, data from Coinalyze showed that 69.9% of traders are long.

Based on Whale Alert data, 699.99 million Dogecoin worth $89 million were transferred from an unknown wallet to Binance. The analytics data also indicated multiple other transactions to other cryptocurrency exchanges. The move could be a step by whales starting to sell off as holdings are transferred for locking in profits.

Price Action: In the past 24 hours, Dogecoin is up 4.5%, taking its weekly gains to 40%. The memecoin’s rally has pushed its valuation to $17.1 billion which is higher than that of MicroStrategy and Robinhood.

Why It Matters: According to data from IntoTheBlock, there is a surge in transactions greater than $100,000 to 1,105 as of Feb. 28, compared to 683 one day prior and 168 transactions as of Feb. 22.

Crypto content creator Trader Tardigrade tweeted:

$Doge has broken out the descending trend and now appears to get the momentum UPWARD.
What if you see a TWO DIGIT $Doge in middle of 2024?🚀 pic.twitter.com/oQ6RIgHtpx

— Trader Tardigrade (@TATrader_Alan) February 29, 2024

What’s Next: While Dogecoin and the community are oozing optimism, CryptoQuant analysis of the memecoin noted it was overbought on the Relative Strength Index (RSI), with a possible trend reversal indication.

It adds that 87% of price movement in the last two weeks has been up and a trend reversal can occur.

Riding high on investors' optimism, Dogecoin is entering a bullish phase, with some predicting even a parabolic breakout.

Read Next: Dogecoin Wows With 14% Gain: 'King Of Memes Still Feels Like A Mispricing,' Crypto VC Says

Photo: Pixabay