AI agents and the stock parodic signs may have been all the rage in recent weeks, but big players are active in the dogecoin (DOGE) markets, some targeting the $1 level in 2025.
Data multiple sources point to a surge in interest in whales, a colloquial term for wealthy and influential market participants, with weekend transactions rising above $100,000. Such action may serve as a precursor to a higher promotion.
January has historically served as memecoin’s best performing month with an average gain of 85%. data showsFigures were higher at 250% and 700% in 2014 and 2021, respectively. Its average rate is 5%, the second highest after October’s 8%.
Futures markets tracking the token set a new record for open interest on Monday, with the number of active contracts increasing from 7.50 billion DOGE to 10.35 billion DOGE over the weekend. This is over the March 2024 peak of 10 billion DOGE, Data from CoinGlass shows.
Open interest is the total number of unregulated derivative contracts. An increase in open interest indicates that new money is entering the market, confirming current price trends and indicating further volatility ahead.
High open interest may suggest a continuation of a strong trend. CoinDesk market analyst Omkar Godbol expects prices to reach 50 cents in the coming weeks, based on price chart analysis.
“DOGE has broken above the closely watched 50-day SMA, which coincides with a renewed uptick in the 10-day SMA, indicating a bullish trend,” Godbole said. “Furthermore, the discount on Coinbase has disappeared compared to Binance. This suggests that prices may breach the current three-day resistance at $0.40 and move to 50 cents and beyond.
The SMA, or simple moving average, is a measure of the average price of an asset over a period of time that can be used to determine resistance and support levels.
“However, trading volume on Coinbase remains intact at the $0.40 resistance, which warrants caution and remains relatively low at the level observed during the November rally,” he added.
Some expect DOGE to reach the memetic milestone of $1 in 2025, almost 50% higher than the token’s 2021 peak of 70 cents.
“Dogecoin will finally hit $1, the world’s largest and oldest memecoin will hit a $100 billion market cap,” said Alex Thorne, head of research at Galaxy Digital wrote in a market forecast post for the year. “However, the Dogecoin market cap will be overridden by the Department of Government Efficiency, which will successfully identify and implement cuts in amounts that exceed Dogecoin’s 2025 high-water mark market cap.”
Much of the recent DOGE rally will revolve around the meme’s support of tech entrepreneur Elon Musk in the Trump administration.
Musk launched plans for a “Department of Government Efficiency,” abbreviated as DOGE, to make government spending more efficient.
This has increased attention and interest in dogecoin, fueling traders’ expectations that there may be more chatter about “DOGE” in the mainstream media and retail circles. The CoinDesk analysis first noted in mid-October.
Source link
https://cdn.sanity.io/images/s3y3vcno/production/2da47252f94b6178d17c7a84fa44a06322d70883-2400×1597.jpg?auto=format
