Speculative Heat Builds as Traders Pile Into XRP and Dogecoin Futures

Leverage Builds in DOGE and XRP Futures as Traders Chase Momentum — But At What Cost?

Speculators are ramping up their bets on Dogecoin and XRP, with futures markets flashing signs of growing risk appetite — or possibly irrational exuberance.

Despite slowing momentum in spot prices, open interest in DOGE and XRP futures has surged. According to data from Glassnode, DOGE futures open interest spiked by nearly 64% this past week, climbing from $989 million to $1.62 billion. DOGE itself has rallied 40% and now trades just above $0.23.

But price isn’t keeping pace with positioning — a potential red flag. As Glassnode noted in a post on X, the divergence signals “persistent speculative positioning” even as upward momentum cools.

XRP is telling a similar story. Futures open interest jumped 41.6%, rising by over $1 billion, while spot gains were comparatively mild — up just 21% over the same period.

When open interest (OI) accelerates without strong follow-through in price, it often points to a market increasingly driven by leverage rather than conviction. This kind of setup has historically preceded sharp liquidations when the tide turns.

Just this week, a wave of liquidations erased hundreds of millions across leveraged positions — a reminder of how quickly sentiment can reverse in overheated derivatives markets.

Open interest reflects the total value of active futures contracts and is often used as a proxy for speculative activity. Surging OI without solid price confirmation suggests traders may be overexposing themselves, hoping to front-run the next big move.

DOGE and XRP — two of the market’s most volatile, retail-heavy assets — are once again in the spotlight. Earlier this year, DOGE derivatives saw a similar boom during speculative pushes toward the $1 mark. While that narrative has cooled, the appetite for risk clearly hasn’t.

Takeaway:
The market is loaded up on leverage — especially in DOGE and XRP. Without sustained spot demand, this powder keg could be primed for a sharp reversal.