Dogecoin (DOGE) is continuing its rebound, but the derivatives market is showing cautious movements. While buying pressure and investor sentiment in the spot market are improving, warning signals have been detected in the funding rate and open interest, leading to divided judgments on whether the upward trend can be sustained.

▲ About 5% Rise in Spot Market... Social Sentiment Indicator at 81.5%

According to the virtual asset market on the 22nd, Dogecoin showed strength, helped by a broad altcoin rebound. CoinMarketCap analyzed that Dogecoin rose nearly 5% in a short period, with the recovery of risk appetite across the overall virtual asset market and technical breakouts supporting the price increase.

Buddying, an active member of the CoinMarketCap community, reported that DOGE rose along with increased trading volume and that the social sentiment indicator climbed to 81.5%. This analysis put Dogecoin's gain at 6.29%.

▲ Funding Rate at -1.45% and Declining Open Interest... Derivatives Market Cautious

However, a different mood is detected in the derivatives market. Buddying analyzed that DOGE's funding rate fell to -1.45% and that open interest also declined on Binance and OKX.

A negative funding rate generally suggests that the perpetual futures market is tilting toward short positions. A decrease in open interest can be interpreted as a signal that existing leveraged positions are being closed or that inflows of new positions are limited.

Because of this, some assessments say that even as spot investors chase the price increase, the derivatives market has relatively weak confidence in the sustainability of the rally. In particular, if the trend of rising prices alongside declining open interest continues, it is necessary to examine whether spot-centered buying, rather than new leveraged capital, is driving the price up.

▲ Bitcoin in the $77,000 Range... A Variable That Could Amplify Volatility

The overall mood of the virtual asset market is also a variable that could increase DOGE's volatility. Bitcoin traded in the $77,000 range on the day, roughly flat over 24 hours. For Dogecoin to sustain an independent upward trend, sustained trading volume along with support from major assets such as Bitcoin will likely be necessary.

Ultimately, Dogecoin sits at a juncture where strong sentiment in the spot market clashes with conservative positioning in the derivatives market. If it rises further accompanied by trading volume and open interest increases again, the uptrend could gain strength, but if funding rate weakness and position reduction continue, short-term profit-taking pressure could grow — a possibility that is hard to rule out.

That said, funding rates and open interest are indicators that change rapidly depending on the exchange and the time of aggregation, so caution is needed against concluding DOGE's future price direction based on specific figures alone.

[This article was written with AI assistance. Virtual assets and derivatives carry high price volatility and leverage risk. This article does not recommend buying, selling, or any investment strategy for specific virtual assets; investment decisions and responsibility rest with the investor.]