Rising Futures Bets on XRP and Dogecoin Indicate Speculative Trends

Key Insights

The interest in Dogecoin (DOGE) and XRP futures has dramatically increased, with DOGE futures open interest soaring by 63.9% and XRP by 41.6% in just one week.
Even though DOGE’s price has recently declined, the rise in futures open interest indicates ongoing speculative activity.
An increase in open interest without a corresponding price rise suggests an increased risk of significant liquidations if market mood shifts.

Market Overview

Speculative positions are ramping up in the futures for XRP and Dogecoin despite waning spot prices, highlighting a trend towards volatility and potential downside risks.

In the past week, the open interest for DOGE futures escalated from $989 million to $1.62 billion, reflecting a 63.9% increase based on data from Glassnode. Currently, DOGE is trading at slightly over 23 cents, gaining nearly 40% within the same time frame.

“This separation points to ongoing speculative positioning, even amid fading price momentum — a situation to watch closely,” noted Glassnode in a post on X.

Wave Froth

A parallel situation is evident with XRP, where open interest has surged over $1 billion, marking a 41.6% increase during the same timeframe. Conversely, XRP’s spot prices have seen limited gains, climbing from around $2.14 to $2.6 over the last week.

Both examples suggest a broader rise in speculative activities driven by derivatives, particularly in volatile assets. When open interest grows alongside (or in absence of) price movements, it indicates that traders may be taking significant risks for potential rewards.

However, this also sets up opportunities for precipitous liquidations should market sentiment reverse.

Rising open interest often signals outsized speculative activity relative to underlying market confidence, and historically, this pattern has presaged rapid price declines. Earlier this year, DOGE futures encountered historic highs as speculators aimed for a $1 DOGE by 2025, although recent betting indicates that the risks associated with both DOGE and XRP remain high.