tradingkey.logo

Dogecoin price poised for a rally as on-chain metrics show bullish bias

FXStreetOct 18, 2024 5:23 AM

  • Dogecoin's open interest is rising, indicating new buying is occurring.
  • DOGE’s long-to-short ratio is above one, suggesting more traders anticipate a price rise.
  • Santiment’s daily trading volume metric spiked, indicating more usage and activity in DOGE’s blockchain.


Dogecoin (DOGE) extends its gains on Friday after rallying over 16% since Monday. DOGE’s on-chain metrics further support this rise: its open interest is rising, the long-to-short ratio is above one and spikes in daily trading volume all hint at the continuation of the rally.

DOGE on-chain metrics show positive bias

Coinglass’s data shows that the futures’ Open Interest (OI) in Dogecoin at exchanges is increasing. Increasing OI represents new or additional money entering the market and new buying, which suggests a bullish trend. When OI decreases, it is usually a sign that the market is liquidating, more investors are leaving, and the current price trend is ending.

The graph below shows that Dogecoin’s OI increased from $593.66 million on Wednesday to $889.53 million on Friday, the highest level since early June.

Dogecoin Open Interest chart. Source: Coinglass

Dogecoin Open Interest chart. Source: Coinglass

Furthermore, Dogecoin’s long-to-short ratio data from Coinglass also projects a bullish outlook for DOGE. The ratio currently stands at 1.06, the highest level in one month. This ratio reflects bullish sentiment in the market, as the number above one suggests that more traders anticipate the price of the asset to rise.

DOGE’s long-to-short ratio. Source: Coinglass

DOGE’s long-to-short ratio. Source: Coinglass

Another aspect bolstering the platform’s bullish outlook is a recent surge in traders’ interest and liquidity in the DOGE chain. Santiment’s data shows that Dogecoin's daily trading volume rose from $573.27 million on Sunday to $2.27 billion on Wednesday, the highest since early August.

Dogecoin daily trading volume chart. Source: Santiment

Dogecoin daily trading volume chart. Source: Santiment

Related news

  • Dogecoin whale activity takes a hit, will DOGE price plummet?
  • Top 3 meme coins: Dogecoin, Shiba Inu and PEPE look set for further declines amid lower investor interest
  • Is Dogecoin ready for a rally?
Disclaimer: The content of this article solely represents the author's personal opinions and does not reflect the official stance of Tradingkey. It should not be considered as investment advice. The article is intended for reference purposes only, and readers should not base any investment decisions solely on its content. Tradingkey bears no responsibility for any trading outcomes resulting from reliance on this article. Furthermore, Tradingkey cannot guarantee the accuracy of the article's content. Before making any investment decisions, it is advisable to consult an independent financial advisor to fully understand the associated risks.

Recommended Articles