Dogecoin Derivatives up 29,807%, Yet Bulls Hold Back

Dogecoin surged 26,548% in futures volume on BitMEX signaling derivatives market activity, but buyers remain on the sidelines as the Dogecoin price stays in the red.

According to CoinGlass data, Dogecoin futures volume rose on BitMEX crypto exchange to $90.64 million, a 26,548% increase in the last 24 hours. This translated to a broader 44% increase in volumes across the derivatives market.

At the time of writing, DOGE was down 2.57% in the last 24 hours to $0.0933 in dull market trading on Wednesday.

Investors are considering a sticky February inflation report as the newly released consumer price index increased a seasonally adjusted 0.3% for the month, putting the 12-month inflation rate at 2.4%, according to Bureau of Labor Statistics data. Both numbers matched the Dow Jones consensus forecast and remained above the Federal Reserve’s inflation target of 2% to reach price stability.

Other economic data due this week includes housing starts and weekly initial jobless claims on Thursday, and the personal consumption expenditures index, which is the Fed’s preferred gauge of inflation on Friday. The Fed is widely expected to hold rates steady at next week’s meeting.

Dogecoin price

Dogecoin was rejected following a sharp increase to $0.10 on Wednesday. Dogecoin seems to be forming resistance slightly above $0.10 as Dogecoin tested price points at $0.104 and $0.106 on Feb. 25 and March 4, respectively, but had a failed breakout.

The daily RSI is slightly below 50, hinting at potential sideways trading and a slight advantage to bears.

The same sideways trading scenario presents on the four-hour chart, with the setup leading to a potential 37% move.

A drop from $0.09 increases the risk of a drop to $0.08. Crypto sentiment is slowly improving as the Fear and Greed index is at 24/100, moving into “fear” territory after more than a month stuck in the “extreme fear” zone.