To the moon? Open interest in Dogecoin futures hits all-time high – but traders are hedging

Dogecoin fever is sweeping the cryptosphere after the token’s notable rise rally over the weekend to its highest level in three years. But despite rosy signals that the Shiba Inu-themed token is destined for the moon (Like the rest of the crypto market), some traders are refusing to let optimism get the better of them.

On Monday, open interest for DOGE options rose to an all-time high: around $2.74 billion, according to data CoinGlass. Before this week, open interest in DOGE futures peaked at $2.21 billion in March and remained below the billion-dollar mark for much of April through late October.

And will this unprecedented pot of money be used for a Dogecoin supercycle? Not quite.

According to further information, options traders shorted DOGE a little more on Monday than they expected the token CoinGlass Data. During Monday’s opening hours, approximately 50.75% of options completed on DOGE were short positions.

Only in the last hour has this trend shifted slightly towards long positions. Still, about half of all DOGE options trades are currently bets that the token’s winning streak will soon fade.

There are reasons for traders to be confident that Dogecoin still has many more mountains to climb. The world’s first meme coin is almost ready doubled The price has risen since Donald Trump retook the White House last week, a development that has been worrying analysts across the board dizzy about the long-term prospects of the crypto market.

Dogecoin is particularly linked to Trump’s victory on election night. Elon Musk, the most famous of the coin boosterplayed a major role in Trump’s campaign and is poised to play a significant role in the president-elect’s administration. During the campaign, Trump suggested that if Musk were re-elected, he would lead a new regulatory agency, literally called the Department of Governmental Efficiency (DOGE).

One could hardly imagine a more enticing roadmap for Dogecoin, whose fate had already been determined cultural relevance. And yet, a large portion of options traders piling into the token seem convinced that the narrative is a little too good to be true.

DOGE is just below that $0.32 At the time of writing, it is up over 12% in the last 24 hours and reached its highest price in three years on Monday morning. The token reached an all-time high of $0.73 in May 2021.

Edited by Andrew Hayward