Recently, DOGE (Dogecoin), a notable cryptocurrency in the market, caught attention with a 10% daily increase on Tuesday. With its highest daily gain of 10% since April 3rd, DOGE has gained 25% in the last two weeks. The meme-themed cryptocurrency DOGE is believed to be supported by speculations of being used as a payment mechanism, especially during its rebranding process on the Twitter platform.
DOGE's Performance and Speculations:
While cryptocurrencies usually enter an expected calmness during the summer months, DOGE is surprisingly showing a strong performance. Markus Thielen, the Chief Research and Strategy Officer at Matrixport, associates DOGE's rise with Elon Musk's marketing campaign to reinvent Twitter. Musk's efforts to expand the usage of the cryptocurrency and speculations about its use as a payment mechanism could have contributed to the increased demand and price surge of DOGE.
Revival in the Perpetual Futures Market:
DOGE's successful performance has also resonated in the perpetual futures market. According to data tracked by Coinglass, the value of "notional open interest," which represents the locked dollar value with active perpetual contracts, has exceeded $500 million in the last two weeks. The total open interest has also surpassed $6.2 billion, approaching the $6.43 billion peak reached on April 8th. This increase indicates new capital entering the market, strengthening the upward trend.
Funding Rates and Possible Directional Change:
However, it is noteworthy that the open interest-weighted funding rates have dropped close to zero at the moment. This suggests a balance between bullish long positions and bearish short positions. Funding rates determine the cost of holding long/short positions, and positive values indicate a prevalence of bulls, while rates near zero signify a balance between both sides. #MEMECOINS
Conclusion and Future Expectations:
Recent market performance indicates that DOGE might take a temporary break from its upward trend. However, Elon Musk's consistent Twitter posts about cryptocurrencies and his rebranding efforts for DOGE could still have an impact on its price in the future. Market participants can evaluate DOGE's future performance by closely monitoring funding rates and technical analyses. #ElonMusk #TWITTER
In Summary:
DOGE's recent successful performance points to interesting developments in the cryptocurrency world. Nevertheless, as with the overall cryptocurrency market, investors need to exercise caution and make well-informed decisions through proper analysis. Market conditions and news can change rapidly, so it is essential to carefully consider investment decisions. #DogeCoin $DOGE