Whale activity and large withdrawals from exchanges signal growing demand for Dogecoin (DOGE), the largest memecoin by market capitalization.
While AI-driven tokens and stock market parody coins have garnered attention recently, significant players in the market are focusing on Dogecoin, with some speculating that it could hit $1 by 2025.
Data from various sources reveals a rise in whale activity, with multiple transactions exceeding $100,000 over the weekend. This uptick could be an early indicator of a potential price surge. Historically, January has been Dogecoin’s best-performing month, averaging an 85% return, with standout performances of 250% in 2014 and 700% in 2021. The token’s median January return is 5%, second only to October’s 8%.
Futures markets also saw record-breaking activity on Monday, with open interest surging to 10.35 billion DOGE, up from 7.50 billion DOGE over the weekend. This marks a new high, surpassing the March 2024 peak of 10 billion DOGE, according to data from CoinGlass. Open interest represents the total number of unsettled derivative contracts and can signal an influx of new capital, indicating potential volatility and confirming current market trends.
Increased open interest could suggest a continuation of bullish momentum. CoinDesk’s market analyst, Omkar Godbole, forecasts DOGE prices could reach 50 cents in the near term based on price-chart analysis.
“DOGE has moved above the crucial 50-day simple moving average (SMA), coinciding with a positive shift in the 10-day SMA, indicating a bullish trend,” Godbole said. “Additionally, the discount seen on Coinbase compared to Binance has disappeared, signaling a strong possibility that DOGE will break through the $0.40 resistance and potentially surge toward 50 cents or more.”
The SMA is a tool used to track an asset’s average price over a set period, helping to identify resistance and support levels.
“However, trading volumes on Coinbase are still lower compared to the November rally, which calls for caution as long as the $0.40 resistance holds,” Godbole added.
Some analysts are more optimistic, projecting that DOGE could hit $1 by 2025, a target nearly 50% higher than its all-time high of 70 cents in 2021.
“Dogecoin will hit $1, giving the world’s oldest memecoin a market cap of $100 billion,” said Alex Thorn, head of research at Galaxy Digital, in his 2025 market predictions. “However, the Department of Government Efficiency, which will enact spending cuts surpassing Dogecoin’s 2025 market cap, will eventually surpass DOGE’s market value.”
Much of Dogecoin’s recent price action has been fueled by Elon Musk’s endorsement of the coin, especially after the entrepreneur’s support during the Trump administration.
Musk’s plans to establish a “Department of Government Efficiency” (D.O.G.E) to improve government spending efficiency have sparked new interest. This initiative has stoked further expectations among traders, with many anticipating that DOGE will continue to gain visibility in mainstream media and among retail traders, as CoinDesk first highlighted in mid-October.
