Dogecoin Signals Rebound as AI Tokens Surge, Market Sentiment Shifts
Dogecoin (DOGE) is gaining attention from risk-on traders, with growing social sentiment and increasing whale activity hinting at potential price increases, as the broader crypto market sees some volatility. While bitcoin (BTC) struggles, Dogecoin’s market dynamics suggest it may be poised for a rebound, especially as AI-driven tokens continue to see impressive gains.
“Dogecoin has been relatively dormant following a short rally at the beginning of the year,” blockchain analytics firm Santiment noted in a recent report. “However, the current sentiment around DOGE is at its lowest point in the past year, indicating a possible buying opportunity for contrarian investors if the broader crypto market shifts upward.”
According to Santiment, the current crowd sentiment for Dogecoin stands at a low of 1 out of 5, signaling potential upside if the market turns bullish again. CoinDesk’s analysis confirms that large transactions involving DOGE have risen, with whale activity above $100,000 spiking recently, indicating increased investor interest. Additionally, DOGE futures markets set a record for open interest earlier in the week, though it has since cooled off in line with the broader market pullback.
Historically, January has been a strong month for Dogecoin, with an average return of 85%. The 50-day simple moving average (SMA) is pointing to a bullish trend for DOGE, with a potential short-term price target of $0.50, which would represent a 30% increase from current levels.
Meanwhile, broader market sentiment remains mixed. Bitcoin has shown neutrality, ranging between $90,000 and $95,000, while Ethereum (ETH) faces bearish sentiment despite staying above $3,000. XRP has experienced bullish movement with an 18% increase in the past week, and Solana (SOL) and Binance Coin (BNB) remain under neutral sentiment after recent price drops.
Cardano’s ADA led the market recovery on Friday with a 5.5% increase over the past 24 hours, helping push the CoinDesk 20 (CD20) index up by 1.04%. Other major cryptocurrencies, including Solana, Ethereum, and Binance Coin, saw slight gains.
In the AI sector, tokens like Bixby, Cookie DAO’s COOKIE, and ChainGPT posted significant increases, rising as much as 50% following their spot listings on Binance. The AI token category was one of the strongest performers, rising an average of 8%, reflecting the continued investor interest in AI-focused crypto projects.
