Dogecoin open futures bets surge to record 16B DOGE as prices top downtrend line

What to know

• Dogecoin futures have reached a record 16.24 billion DOGE in open interest, marking a 48% increase this month.

• The price of Dogecoin has surged 47% to over 24 cents, breaking past a bearish trendline.

Futures tied to dogecoin are hotter than ever as prices for the joke cryptocurrency surge past a bearish trendline.

The cumulative open interest in the standard and perpetual futures listed worldwide has risen to a record 16.24 billion DOGE, around $4 billion worth of tokens at current prices, up 48% for the month, according to data source Coinglass. The previous record of 14.31 billion DOGE was hit in January this year.

Open interest refers to the number of active or open contracts at a given time. A rise in open interest alongside a rise in price is said to confirm the uptrend. Moreover, DOGE's perpetual funding rates hold positive, indicating a growing demand for leveraged bullish futures bets. An increased demand for leveraged bets often leads to heightened price volatility.

DOGE's futures open interest (Coinglass)

DOGE's price has rallied 47% to over 24 cents this month, surpassing the trendline that characterized the steep sell-off from the December high of around 48 cents, according to data from TradingView.

The breakout indicates the path of least resistance is now on the higher side. Prices have also topped the 200-day simple moving average to suggest a renewed bull market.

DOGE's price chart. (TradingView/CoinDesk)