Dogecoin rose over 20% in the past week as whales amassed over $6 billion DOGE, driven by strong bullish technical indicators.
According to an X after According to analyst Ali Martinez, Whales reportedly bought more than 1.08 billion DOGE on January 3, which was worth approximately $413 million at the time.
The next day another whale was transferred 5 billion DOGEvalued at around $2 billion at the time, moving to an unknown address to become the fourth largest holder of the meme coin.
Data from analytics platform Santiment shows a rise in whale transactions of over $1 million for Dogecoin over the past week.
Whales’ accumulation is typically seen as a major bullish signal for an asset, as these deep-pocketed players are often better at identifying market trends and making timely investments in assets that have the potential for long-term profits.
Furthermore, the meme coin’s daily active addresses have also increased over the past week, indicating increased investor activity, which is generally considered an indicator of positive investor sentiment and robust network health.
Dogecoin also attracted investor interest after a publicly traded Canadian investment company, Spirit Blockchain Capital, announced plans to leverage its DOGE holdings to generate returns through a dedicated
Another factor driving DOGE’s recent momentum is the speculation surrounding Elon Musk’s plans to launch a payment system on his X platform. A longtime proponent of Dogecoin, Musk has previously shown his support by temporarily accepting DOGE for Tesla payments and regularly endorsing the meme coin on social media. Many are now speculating that DOGE will be included as a payment option on ‘X Money’ alongside Bitcoin and possibly other cryptocurrencies.
Meanwhile, open interest in DOGE has increased by more than 50%, implying increased demand for the altcoin among derivatives traders. According to to CoinGlass, DOGE’s OI grew from $2 billion on December 1 to $2.97 billion on December 6.
The DOGE rally can continue
Technical indicators remain positive for DOGE as DOGE’s price on the 1-day chart remains above the 50- and 200-day Exponential Moving Averages, indicating that buyers are in control.
Furthermore, the Moving Average Convergence Divergence and Price Oscillator lines are pointing upwards, generally indicating that DOGE could continue its rally in the coming weeks, possibly targeting its resistance level at $0.41, a break above which it could push it to a 2024 high. from $0.47.
With January historically being Dogecoin’s most profitable month according to Coinglass, several market experts, including Alex Thorn, head of research at Galaxy Digital, predict that DOGE may reach the coveted $1 target by the end of 2025.
However, the rally may face some challenges. Dogecoin’s weighted social sentiment, according to Santiment, currently sits at -0.60, meaning many investors are currently pessimistic about Dogecoin’s potential to rise in the near term.
This negative sentiment could be a barrier in the short term, but it also presents an opportunity for contrarian traders to take advantage of the market’s cautious outlook.
At the time of writing, Dogecoin (DOGE) was up 20% over the past seven days, exchanging hands at $0.3825, while its market cap stood at $56.5 billion at the time of writing, outperforming other leading meme coins such as Shiba Inu (SHIB), Pepe (PEPE) and Bonk (BONK) posted gains of 10%, 12.3% and 5% respectively during the same period.
