Dogecoin Sees Quiet Breakout As Data Signals Rally Continuation<\/a><\/div>\nThis reduction in open interest presents a major ‘washout’ of speculative positions, typically viewed as a market reset where weaker hands exit, and the excess leverage is reduced. Notably, this cleansing of market participants could be another hint that a more sustainable upwards move is brewing.<\/p>\n
Another vital aspect shown in the chart is the reset of funding rates to lower levels, which is significant as it reduces the cost of holding long positions. Lower funding rates can encourage new buying activity, especially from participants who were previously sidelined due to high costs associated with maintaining leveraged positions.<\/p>\n
CRG’s analysis also includes an observation on the Cumulative Volume Delta (CVD) for both futures and spot markets. The CVD for futures has moved below that of the spot market, indicating that futures traders might be taking more bearish positions or closing existing positions more aggressively compared to spot traders. This divergence suggests that the spot market, which is generally less speculative, retains bullishness, while acting as a buffer against the bearish futures markets.<\/p>\n
At press time, DOGE traded at $0.40.<\/p>\n