Dogecoin (DOGE) is currently one of the best-performing crypto projects in the market. The popular dog-themed crypto has risen 3.6% over the previous 24 hours and 15.2% in the weekly charts. The project has overtaken Cardano (ADA) to become the 8th largest crypto by market cap.
According to the data from IntoTheBlock, the number of Dogecoin (DOGE) holders in profit has increased by 17.99%. Currently, 57% of holders are in profit, while 40% are at a loss and 3% are even.
Also Read: Elon Musk To Enable Dogecoin Payments in Twitter’s X?
Furthermore, DOGE has also seen a 10% rise in its open interest (OI). According to CoinGlass, futures open interest for DOGE surpassed $500 million for the first time since April 2023. At press time, DOGE OI stood at $512.71 million.
Will Dogecoin continue its rally through the summer?
DOGE’s current rally may be attributed to Elon Musk’s Twitter making a transition to X. Moreover, the billionaire’s bio on the social media platform now contains a “D” in the style of DOGE’s symbol. Musk’s tweets and interviews have often led to DOGE’s price rallying as he is one of the biggest DOGE proponents. Additionally, Musk has expressed interest to incorporate DOGE payments on X. That being said, DOGE’s current rally might be short-lived.
Although the number of people in profit has increased, IntoTheBlock data also indicated that large transactions have fallen by 10.92%. This could translate to a possible correction ahead as large transactions, or whale transactions often play a big part in an asset’s price movements.
Also Read: Dogecoin Triggers $10 Million in Liquidation for Short Traders
Furthermore, CoinGlass data shows that weighted OI is currently in the negative, therefore shorts are dominating right now. This could mean that investors expect DOGE’s price to face a correction soon.
And lastly, the larger crypto market is in a slump, and Dogecoin (DOGE), despite Musk’s comments and moves, could follow suit. The US Fed is also on the verge of introducing another interest rate hike, which could bring more volatility to the market, thereby causing DOGE to lose valuation.