Dogecoin rose more than 20% in the past week as whales raised more than $6 billion in DOGE, driven by strong bullish technical indicators.
According to X mail According to analyst Ali Martinez, whales reportedly bought over 1.08 billion DOGE on January 3, worth about $413 million at the time.
The next day, another whale was transported 5 billion dogewhich was valued at around $2 billion at the time, moved to an unknown address to become the fourth largest holder of the meme coin.
Data from analytics platform Santiment shows an uptick in whale transactions of more than $1 million for Dogecoin over the past week.
Whale accumulation is usually seen as a major bullish signal for an asset, as these players with deep pockets are often more adept at identifying market trends and making timely investments in assets that have the potential to deliver long-term gains.
Furthermore, daily active addresses for the meme coin also rose in the past week, indicating increased investor activity, which is generally considered an indicator of positive investor sentiment and the network's strong health.
Dogecoin has also attracted investor interest after a publicly listed Canadian investment firm, Spirit Blockchain Capital, Announce It plans to leverage its DOGE holdings to generate yield through a dedicated program
Another factor driving DOGE's recent momentum is the speculation surrounding Elon Musk's plans to launch a payments system on his X platform. A long-time Dogecoin advocate, Musk has previously shown his support on a temporary basis Accepting DOGE for Tesla payments The meme currency is frequently endorsed 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 risen by more than 50%, meaning increased demand for the altcoin among financial derivatives traders. According to For CoinGlass, DOGE's OI rose from $2 billion on December 1 to $2.97 billion on December 6.
DOGE could continue to rise
Technical indicators remain positive for DOGE, as on the daily chart DOGE price remains above the 50-day and 200-day EMAs, indicating that buyers are in control.
Furthermore, the Moving Average Convergence, Divergence and Price Oscillator lines have trended higher, typically indicating that DOGE may extend its rally in the coming weeks, perhaps targeting its resistance level at $0.41, above which a breakout could push it higher. Its level in 2024. of $0.47.
With January historically being the most profitable month for Dogecoin according to Coinglass, many market experts, including Galaxy Digital Head of Research Alex Thorn, expect DOGE to rise to the highly desired $1 target by the end of 2025.
However, the assembly may face some challenges. The weighted social sentiment for Dogecoin, according to Santiment, is currently -0.60, meaning that many investors are currently pessimistic about its upside potential in the short term.
This negative sentiment can act as a short-term buffer, but it also represents an opportunity for contrarian traders to take advantage of the market's cautious outlook.
At the time of publication, Dogecoin (Doug) rose 20% over the past seven days, trading at $0.3825, having a market cap of $56.5 billion at writing and outperforming other leading meme coins such as the Shiba Inu (Gray), baby (baby) and Bonk (Bonk) which recorded gains of 10%, 12.3%, and 5%, respectively, during the same period.
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