Interest in Dogecoin among futures traders has surged as the cryptocurrency’s price reaches its highest level in over a month. However, not all traders are convinced that this bullish trend will last.
On July 20, Dogecoin’s price hit its highest monthly level, sparking increased activity among traders. Pseudonymous crypto trader Shelby noted on X (formerly Twitter) that Dogecoin appears ready for a significant upward move. Shelby highlighted that Dogecoin’s breakouts often trigger similar movements in other altcoins, like Floki (FLOKI) and Shiba Inu (SHIB), which have seen increases of 37% and 3.89%, respectively, according to CoinMarketCap.
Crypto trading accounts Cheds and CryptoBoss also pointed to Dogecoin’s strong price base, suggesting a breakout is underway. As of now, Dogecoin is trading at $0.1336, marking an 18.82% rise over the past week.
Caution Advised Amid Bullish Trends
Despite the optimism, some traders urge caution. Pseudonymous trader Magnate warned followers not to succumb to the fear of missing out (FOMO), suggesting that a pullback could offer a better entry point. Magnate indicated that a 10.6% drop to $0.1194, a level seen just a week ago, could liquidate around $47.23 million in long positions.
Dogecoin’s Open Interest (OI)—the total value of all outstanding futures contracts—hit its highest level for July, increasing by 19% to $647.19 million over four days, as reported by CoinGlass.
Market Sentiment Shifts to Greed
The broader market sentiment is also improving. The Crypto Fear & Greed Index, which tracks market sentiment towards Bitcoin and other cryptocurrencies, currently shows a “Greed” score of 74. This is a significant jump from last week’s “Extreme Fear” score of 33.
Speculation on Dogecoin’s Future Performance
The recent price surge has led to speculation about Dogecoin’s potential to replicate its past performance. After the Bitcoin halving in May 2020, Dogecoin reached an all-time high of $0.73 on May 8, 2021. If this pattern repeats, Dogecoin could hit a new all-time high in April 2025. However, the speculative nature of memecoins makes technical analysis challenging.
