Dogecoin's Futures Activity up by 6,439% Amid Renewed Interest, What to Watch?

Dogecoin futures activity saw a wild spike as $DOGE made a major move on the markets. According to CoinGlass data, Dogecoin futures volume on the Bitmex crypto exchange rose 6,439% in the last 24 hours to reach $176 million.

$DOGE hovered near $0.152, following through on its recovery from a low of $0.11722 on Jan. 1. Dogecoin is poised for its sixth day of gains taken from this date and trades up 2.52% in the last 24 hours to $0.1523 and up 22% weekly.

Dogecoin institutional interest is rising, as Bloomberg ETF analyst Eric Balchunas stated yesterday, that the 2x Dogecoin ETF was among the best-performing ETFs to start the year. The others included 2x Dogecoin ETF and a 2x single-stock semiconductor ETF.

In line with this optimism on the markets, Dogecoin spot ETFs marked a positive turnaround in flows. According to Sosovalue data, Dogecoin ETFs attracted $1.2 million in daily total net inflow on Jan. 5, bringing the cumulative total net inflow to $6.24 million and total net assets to $10.66 million. The reversal marks a renewed pickup in demand, breaking the recent stagnation in flows.

What to watch now?

Dogecoin began to rise from a low of $0.1172 on Jan. 1. The price move has produced a crucial breakout for Dogecoin, now trading above the daily MA 50 (currently at $0.1392), which capped its price action since October. With Dogecoin now trading above this level, the price will be watched to see if it can sustain above it in the coming sessions.

Dogecoin's open interest, which refers to the number of unsettled positions on the derivatives market, has risen in tandem.

According to CoinGlass data, Dogecoin open interest increased 6.23% in the last 24 hours to $1.95 billion, indicating new money entering as well as traders' participation.

The next major resistance for Dogecoin lies in the $0.20 range, close to the daily MA 200, while immediate support is expected at the daily MA 50 at $0.1392. If this support fails, Dogecoin might seek support next in the $0.11 range.