Dogecoin’s open interest is rising, indicating new buying is occurring. DOGE’s long/short ratio is above 1, suggesting that more traders are expecting the price to rise. Santiment’s daily trading volume indicator has spiked, indicating increased usage and activity on DOGE’s blockchain.
Dogecoin (DOGE) extended its gains on Friday after rising more than 16% since Monday. DOGE’s on-chain metrics further support this rise. Open interest is rising, the long-to-short ratio is above 1, and the spike in daily trading volume all points to a continued rally.
DOGE on-chain indicators show positive bias
Coinglass data shows that Dogecoin futures open interest (OI) on exchanges is increasing. An increase in OI represents new or additional money flowing into the market and new purchases being made, suggesting a bullish trend. When OI decreases, it usually indicates that the market is clearing, more investors are leaving, and the current price trend is coming to an end.
The graph below shows that Dogecoin’s OI increased from $593.66 million on Wednesday to $889.53 million on Friday, its highest level since early June.
Dogecoin open interest chart. Source: Coinglass
Additionally, Dogecoin long-to-short ratio data provided by Coinglass also predicts a bullish outlook for DOGE. The same ratio is currently 1.06 times, the highest level in one month. This ratio reflects bullish sentiment in the market, as a number above 1 suggests that more traders are expecting an increase in the asset’s price.
DOGE long to short ratio. Source: Coinglass
Another aspect supporting the bullish outlook for the platform is the recent increase in trader interest and liquidity in the DOGE chain. Dogecoin’s daily trading volume rose from $573.27 million on Sunday to $2.27 billion on Wednesday, the highest level since early August, according to Santiment data.
Dogecoin daily trading volume chart. Source: Santiment
