Speculative Heat Rises as Futures Bets on DOGE and XRP Soar Despite Cooling Prices
Despite signs of weakening momentum in spot markets, traders are doubling down on high-risk assets like Dogecoin (DOGE) and XRP through leveraged futures positions — a classic sign of speculative froth.
Over the past week, DOGE futures open interest surged by nearly 64%, jumping from $989 million to $1.62 billion, according to data from Glassnode. The move comes as DOGE rallied roughly 40% over the same period, trading just above $0.23 as of Wednesday.
Glassnode flagged the divergence in a post on X, calling it a “persistent speculative positioning” pattern, even as price momentum begins to stall — a setup that could warrant caution.
XRP is seeing a similar uptick in derivatives activity. Open interest in XRP futures grew by more than $1 billion — a 41.6% rise — even though spot price gains were more modest, climbing from around $2.14 to $2.60.
The trend points to growing risk exposure across memecoins and altcoins with high beta. When open interest (OI) rises sharply while prices plateau or drift, it often signals that traders are chasing upside with leverage rather than conviction.
But that kind of positioning comes with a cost. If sentiment shifts, it sets the stage for rapid, forced liquidations — a dynamic that wiped out hundreds of millions in futures positions earlier this week alone.
Open interest represents the total value of active futures contracts that haven’t been settled and is often used to gauge speculative pressure. When leverage builds up in the absence of sustained spot buying, it can act as a warning sign of impending volatility.
Earlier this year, DOGE futures volume hit record highs amid speculative bets that the memecoin could hit $1 in 2025. While that narrative has since cooled, the renewed surge in futures bets signals traders are still treating DOGE and XRP as high-risk, high-reward plays — with the potential for explosive moves in either direction.
