Dogecoin fever is overtaking the cryptosphere after the token’s remarkable rally to three-year highs over the weekend. But despite rosy signals that the Shiba Inu-themed token is destined for the moon (along with the rest of the crypto market), some traders aren’t letting optimism get the best of them.
On Monday, open interest on DOGE options soared to an all-time high: some $2.74 billion worth, according to data from CoinGlass. Prior to this week, open interest on DOGE futures had peaked at $2.21 billion back in March, and had mostly been below the billion-dollar mark from April until late October.
And is that unprecedented pot of money being waged on a Dogecoin supercycle? Not quite.
Dogecoin Blasts Off: DOGE Hits Highest Price in 3 Years
Dogecoin to a dollar? Not quite—but a quarter is in reach, and that's the highest price that the original meme coin has seen in nearly three full years. DOGE has continued to make monstrous gains into the weekend, rising nearly 20% over the last day to hit a current price of $0.247. The last time Dogecoin's price was this high was in November 2021, during a crypto market surge that pushed Bitcoin to what was then an all-time high mark of around $69,000. The O.G. meme coin has now more than doubl...
Over the course of Monday, options traders have shorted DOGE slightly more than they’ve longed the token, according to additional CoinGlass data. In Monday’s opening hours, roughly 50.75% of options taken out on DOGE were short positions.
Only in the last hour has that trend shifted ever so slightly towards longs. Even still, roughly half of all DOGE options trades are currently bets that the token’s streak will soon fade.
There are reasons for traders to be confident that Dogecoin has many more mountains to climb. The world’s first meme coin has nearly doubled in price since Donald Trump retook the White House last week, a development that has analysts across the board giddy about the crypto market’s long-term prospects.
Dogecoin has particular connectivity to Trump’s election night victory. Elon Musk, the coin’s most famous booster, played a major part in Trump’s campaign, and is poised to play a significant role in the president-elect’s administration. Trump proposed on the campaign trail that, should he be re-elected, Musk would lead a new regulatory agency literally called the Department of Governmental Efficiency (D.O.G.E.)
Who Let the Doge Out? Dog-Themed Meme Coins Spike on Trump, Fed-Fueled Rally
Dog-themed meme coins are running in a pack, following the lead of Dogecoin’s (DOGE) incredible rally to three-year highs, bolstered by trading fervor on several favorable tailwinds for crypto. Alpha meme coin Doge rose to a top of $0.29 on Sunday following a break earlier in the day that saw the crypto spike to its highest point since October 30, 2021. The asset is up 27% over the last 24 hours, trading at $0.26, CoinGecko data shows. Several market tailwinds The recent election of President-e...
One could hardly cook up a more tantalizing roadmap for Dogecoin, which has previously seen its fortunes tied to cultural relevance. And yet, a huge portion of options traders rushing to the token appear confident that narrative is a little too good to be true.
DOGE sits at just under $0.32 at writing, up over 12% in the last 24 hours and reaching its highest price in three years Monday morning. The token hit an all-time high of $0.73 in May of 2021.
Edited by Andrew Hayward
