Dogecoin (DOGE) saw its biggest single-day gain since April 3 on Tuesday, with a 10% jump according to Binance data tracked by charting platform TradingView. The meme cryptocurrency has gained 25% in two weeks, with speculation that it could be used as a payment mechanism on the rebranded Twitter platform.
As crypto is entering the summer lull that we initially expected for August, DOGE might be the summer’s highflyer as other crypto themes are taking a backseat. Musk is on a marketing tour in re-inventing Twitter, said Markus Thielen, head of research and strategy at Matrixport.
This speculation is backed up by the pick-up in the perpetual futures market tied to DOGE. The notional open interest, or the dollar value locked in the number of active perpetual futures contracts, has topped the $500 million mark for the first time since April 19, according to Coinglass. This tally has more than doubled in two weeks, and in DOGE terms, open interest has surged to 6.2B, nearing the peak of 6.43B reached on April 8.
The combination of an increase in open interest and a rise in price suggests an influx of new money into the market and confirms an uptrend. However, at press time, the open interest weighted-funding rates have dropped to zero, suggesting a balance between bullish long and bearish short positions. This may mean that DOGE will take a breather after its recent market-beating performance.