In recent days, there has been an interesting phenomenon in the crypto market. Dogecoin's open interest suddenly surged by 7%, directly reaching $1.52 billion, and the futures contract volume also hit the level of $12.25 billion. At first glance, it seems like a bullish signal indicating a potential rally, but the strange part is—the price actually fell by 0.8%, dropping to $0.1227, while trading volume sharply shrank by 28.18%, down to $651.63 million.

This triple divergence of "contract surge, price decline, and volume contraction" is not something you see every day. Traders and analysts in the market are usually very sensitive to such situations because they often hide key signals behind them.

First, let's explain what an increase in open interest means. Simply put, an increase in open interest indicates that new funds are continuously entering the market to open positions, suggesting growing market attention and trading enthusiasm. Usually, open interest and price should move in sync—when open interest increases, prices tend to rise (bullish dominance), or when open interest decreases, prices tend to fall (bearish dominance). But DOGE's current situation breaks this common logic.

From a technical perspective, DOGE's RSI is currently at 38, in the oversold zone. This data point is very critical. One possible interpretation is that a group of traders is engaging in "bottom-fishing long positions," seeing buying interest at low levels and opening longs to participate in the rebound. Meanwhile, some selling pressure still exists and has not been fully released. It is this tug-of-war between these two forces that creates the scenario of increasing contracts while the price declines.

The noticeable decline in trading volume is also worth noting. When the market shows divergence and the strength of forces is unclear, it is often accompanied by shrinking volume. This indicates that although contracts are increasing, the buyers and sellers willing to trade at the current price are both on the sidelines, and market sentiment is in a state of hesitation.