Dogecoin futures activity surges by 6,439%, institutional interest rebounds. What is the outlook?

Source: CryptoNewsNet Original Title: Dogecoin’s Futures Activity up by 6,439% Amid Renewed Interest, What to Watch? Original Link:

Market Dynamics

Dogecoin futures activity experienced significant volatility, with DOGE achieving a major rally in the market. According to CoinGlass data, Dogecoin’s 24-hour futures trading volume at a leading futures exchange surged by 6,439%, reaching $176 million.

DOGE hovers around $0.152, continuing the rebound from the January 1 low of $0.11722. Dogecoin has risen for the sixth consecutive day since that date, up 2.52% in the past 24 hours to $0.1523, with a weekly increase of 22%.

Institutional Interest Rising

Institutional interest in Dogecoin continues to grow. According to Bloomberg ETF analyst Eric Balchunas yesterday, the 2x Dogecoin ETF is among the top-performing ETFs at the start of the year, along with another 2x Dogecoin ETF and a 2x single-stock semiconductor ETF.

Driven by market optimism, Dogecoin spot ETFs are showing positive shifts. According to Sosovalue data, Dogecoin ETFs attracted an average daily net inflow of $1.2 million on January 5, with total net inflows reaching $6.24 million and total assets amounting to $10.66 million. This shift marks a resurgence in demand, breaking recent liquidity stagnation.

Technical Analysis

Dogecoin started rising from the January 1 low of $0.1172, creating a key breakout point. The current trading price has broken above the 50-day moving average (currently at $0.1392), which has been suppressing its price movement since October. As Dogecoin now trades above this level, attention should be paid to whether it can sustain above this level in the coming trading days.

Open interest in Dogecoin derivatives (unsettled positions in the derivatives market) has also increased. According to CoinGlass data, Dogecoin’s open interest grew by 6.23% in the past 24 hours to $1.95 billion, indicating new capital inflows and increased trader participation.

Key Price Levels

The next major resistance for Dogecoin is around $0.20, near the 200-day moving average, while the recent support level is expected at the 50-day moving average of $0.1392. If this support is broken, Dogecoin may seek the next support level around $0.11.