Rising whale activity and significant withdrawals from exchanges indicate growing interest in Dogecoin (DOGE), the largest memecoin by market cap.
Although AI tokens and stock market parody coins have recently dominated headlines, major market players are refocusing their attention on Dogecoin, with some analysts predicting that the token could hit $1 by 2025.
Data from various sources reveals a sharp uptick in whale transactions, particularly those over $100,000, a common sign that market movements could be gearing up for a significant price increase. Historically, January has been Dogecoin’s best-performing month, with an average return of 85%. Exceptional years, such as 2014 and 2021, saw returns of 250% and 700%, respectively. The median return for the month is 5%, just behind October’s 8%.
Futures markets tracking DOGE also saw a record surge on Monday, with open interest rising to 10.35 billion DOGE, up from 7.50 billion DOGE over the weekend. This surpasses the previous record of 10 billion DOGE in March 2024, according to CoinGlass data. Open interest refers to the total number of unsettled derivative contracts, and an increase in this figure often suggests new capital is entering the market, validating the current trends and signaling potential volatility.
This rise in open interest suggests a continuation of the bullish momentum. CoinDesk market analyst Omkar Godbole predicts DOGE could rise to 50 cents in the near term, based on favorable technical chart patterns.
“DOGE has moved above the key 50-day simple moving average (SMA), and the 10-day SMA is showing an upward trajectory, indicating a positive bias,” Godbole explained. “Additionally, the price gap between Coinbase and Binance has disappeared, signaling that DOGE may soon break through the $0.40 resistance level, paving the way for a rally toward 50 cents or higher.”
The simple moving average (SMA) is a widely used tool for tracking price trends, helping traders identify areas of support and resistance.
“However, trading volumes on Coinbase remain lower than during the November rally, so caution is warranted as long as the $0.40 resistance remains intact,” Godbole added.
Some analysts are even more optimistic, forecasting that Dogecoin could reach $1 by 2025, nearly 50% higher than its all-time high of 70 cents in 2021.
“Dogecoin is on track to hit $1, pushing its market capitalization to $100 billion,” said Alex Thorn, head of research at Galaxy Digital, in his 2025 market forecast. “However, this market cap could soon be overshadowed by the Department of Government Efficiency, which will execute spending cuts exceeding Dogecoin’s projected market cap in 2025.”
The recent rally in Dogecoin has been fueled in part by the continued backing of technology mogul Elon Musk, particularly during his support of the Trump administration.
Musk’s proposal for a “Department of Government Efficiency” (D.O.G.E.) to streamline government spending has generated additional excitement. This has sparked speculation that Dogecoin will continue to gain attention in mainstream media and among retail investors, as CoinDesk highlighted in an analysis from mid-October.
