CoinGlass data reveals Dogecoin (DOGE) traders have committed over $1.96 billion to the cryptocurrency's derivatives markets

Crypto traders committed over $1.96 billion to Dogecoin (DOGE) derivatives markets on Wednesday, suggesting strong speculative activity around the dog-themed cryptocurrency, according to CoinGlass data.

Open interest represents the total value of outstanding derivatives contracts, such as futures and options, that have not yet been settled.

Despite this figure of $1.96 billion recorded in the last 24 hours, this represents a 4.47% drop from the previous day and is well below the November/December 2024 average of over $3 billion.

At the time of writing, Dogecoin was down 1.52% in the last 24 hours to $0.194, reversing a five-day streak of advances since March 22. The dog-coin has risen 13% in the last seven days.

In a recent tweet, Glassnode noted that Dogecoin's rise earlier this week appeared to be spot-driven rather than fueled by leveraged speculation. This is as the seven-day SMA of futures volume rose from the bottom but remains close to October 2024 levels.

(Image: Glassnode, Twitter)

DOGE funding rates also declined at the start of the week, approaching neutral levels. This is added to the fact that the recent Dogecoin price increase might not have been driven by excessive long positioning but rather by spot-led trading.

Dogecoin's key price levels revealed

Glassnode's URPD shows that 7% of the DOGE supply is concentrated at $0.20 - the third-largest cluster after $0.17 and $0.07. This level saw big inflows around Jan. 22, but wallets likely bought earlier, raising their cost basis. In this light, Glassnode identifies $0.20 as a critical level for Dogecoin, which may act as resistance in the near term.

If $0.20 is breached, there is little Dogecoin supply until $0.31 - the next major URPD cluster. This gap increases the likelihood of a sharp leg, as there is little resistance in between. In this situation, breakout momentum would be actively observed if volume increased, with a focus on $0.20 and eventually $0.31.

Glassnode also noted that 15% of the DOGE supply was last moved 6-12 months ago. These are holders who bought before the November/December rally - and they are still holding. That is a strong signal of conviction.

Since early March, the 3-6 million HODL Wave has started to swell. This suggests many bought during the January bounce from $0.32 to $0.41. If the Dogecoin price returns to these levels, some may look to exit at break-even, creating possible resistance ahead for DOGE.