Dogecoin futures open interest has surged to an all-time high of $4.6 billion as of November 23, indicating a significant escalation in leverage demand, although DOGE is still trading 35% below its peak price of $0.74 from May 2021. Traders are wary that this recent 224% rally from November 3 to November 23 could hint at a market cycle top, reminiscent of previous price corrections. Previous surges in DOGE have seen overleveraged long positions lead to forced liquidations, with notable declines following such spikes in open interest. Currently, the monthly cost for a leveraged long position in DOGE sits around 2%, within the neutral range. However, the brief spike to 7.5% indicates increased leverage costs. Despite the recent impressive rally, DOGE’s performance has trailed behind other altcoins like Stellar, Cardano, and XRP, raising questions about the drivers behind the surge and the potential for DOGE to decouple from broader altcoin trends. As long as leverage remains balanced, there are no immediate concerns among traders.

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