Dogecoin Open Interest Surges to $1.62B Despite Price Drop: Here’s What’s Happening

Dogecoin open interest in the futures market sees a considerable spike despite price pullback, signaling strong speculative demand amid cooling momentum.

Dogecoin (DOGE) recently experienced significant price momentum, rising sharply from around $0.16 on May 6 to just over $0.24 by May 11. Despite a minor pullback settling between $0.22 and $0.23, the crypto maintained an overall upward trend characterized by higher highs and higher lows. 

Notably, amid this price activity, futures markets show signs of an increase in speculative interest.

Divergence Between Price and Dogecoin Open Interest

Glassnode, an on-chain and financial insight provider, recently highlighted a divergence occurring between Dogecoin’s spot price and futures interest.

Typically, spot price movements align closely with speculative activity in futures markets, but the current situation differs. While Dogecoin’s price retraced from its peak near $0.25, speculative interest, as indicated by futures open interest, appears to have surged significantly.

In earlier months, from mid-February to early March, Dogecoin experienced a brief rally above $0.23, accompanied by increased futures activity.

However, as DOGE’s price began to decline in subsequent weeks, futures open interest mirrored this downturn, eventually bottoming below $900 million by April. This correlation showed traders’ cautious stance during declining or uncertain market conditions.

The dynamics have shifted dramatically from late April when Dogecoin’s price surged from around $0.15 to nearly $0.25 by early May then cooled down at the $0.22 level. 

Importantly, Dogecoin open interest has continued to increase, from $989 million to $1.62 billion this week, even after the price pulled back. Glassnode says this indicates persistent speculative positioning, a setup the analytic platform believes is worth monitoring.

Notably, this rise in speculative activity can lead to heightened volatility. If bearish sentiment dominates, it may pressure the price lower. However, if too many traders are short, a short squeeze could trigger a sharp rebound. Long term, persistent speculation without fundamental growth may undermine price stability and investor confidence.

Positive Funding Rates Indicate Bullish Sentiment

Meanwhile, the funding rate history for Dogecoin from Coinglass demonstrates a positive trend across major cryptocurrency exchanges as of May 13, 2025. Exchanges such as Bitmex, HTX, Gate.io, and Bitget reported funding rates at 0.0100%. 

Binance and OKX also registered positive but slightly lower funding rates of 0.0036% and 0.0034%, respectively. Positive funding rates indicate that futures traders predominantly hold long positions, reflecting a bullish market outlook.

Analysts Identify Critical Support Levels

Amid these positive futures market metrics, analysts on the social platforms are also bullish. Market analyst Rekt Capital noted a significant development in Dogecoin’s weekly price action.

Dogecoin achieved a weekly close above its pre-halving resistance level, marking a critical shift on its price chart. Previously acting as a resistance ceiling, this level has transitioned into a potential support zone following recent price activity.

Rekt Capital emphasized this shift as a key technical pattern indicating ongoing bullish control. Currently, Dogecoin is undergoing a retest of this newly established support zone around $0.22. According to the analyst, successfully holding this support could set the stage for DOGE to target at least $0.27 as the next significant price level.