Taking into account the on-chain calculations, it is forecasted that the price of Dogecoin will increase in the near future.
The open interest of Dogecoin is also growing and this means that more people are purchasing Dogecoin.
The long-to-short ratio is also above one, which suggests that the traders are confident that there will be a price increase for DOGE in the future. Most importantly, the daily trade volume measure for Santiment showed a pronounced increase, indicating that the DOGE blockchain is experiencing rapid growth in usage and activity. Dogecoinâs (DOGE) gains on Friday were justified as DOGE has now appreciated 16% since Monday.
This is also in-par with DOGEâs on-chain fundamentals: more long positions than short positions at 1:3, spikes in trade volume suggest higher demand sale, and open interest is on the upswing.
DOGE on-chain metrics show more approaches towards the positive side. According to Coinglass's research, it has been observed that Dogecoin futures open interest (OI) is steadily increasing on exchanges. An increase in Open Interest means that more funds are entering the market which is a good factor. It is also common for OI to fall and remain low when investors collectively remove their invested funds, to indicate that the price trend that has been in place is likely to change.
The open interest (OI) on Dogecoin as indicated by the graph below, reached a new peak of $889.53 million on Friday from $593.66 million the previous Wednesday. Similarly, the amount is said to be the highest it has ever been since early June of this current year.
Similarly, judging by the long to short DOGE figures as cited by Coinglass together with the DOGE figures, the forecast for DOGE thanks its current momentum is optimistic. The ratio has gone to 1.06 which is a peak for the past one month ago. An increase in the ratio signifies that more traders anticipate for the price of the asset to be above the break-even mark which is a bullish indication for the market.
Apart from recent performance of the DOGE chain on trading volume and liquidity, soared volume on Dogecoin in recent days is strengthened with the bright perspective on this platform. Dogecoinâs daily trade volume reached Wednesday September 3, the equivalent of $2.27 billion according to the statistics provided by Santiment. It is worth noting that this is the highest volume recorded since early August and is up from $573.27 million on last Sunday.
