AI brokers and stock market parody tokens may have been all the rage in recent weeks, but big players are active in the dogecoin (DOGE) markets, with some targeting a $1 level in 2025.
Data from multiple sources shows a spike in interest from whales, a colloquial term for wealthy and influential market participants, with transactions worth more than $100,000 rising over the weekend. This activity can serve as a precursor to a bullish move.
January has historically been memecoin’s best-performing month, with an average return of 85%, the data shows, although it had outlier performances of 250% and 700% in 2014 and 2021, respectively. It has an average yield of 5%, the second highest after October’s 8%.
Futures markets tracking the token set a new record in terms of open interest on Monday, with the number of active contracts rising to 10.35 billion DOGE from 7.50 billion DOGE over the weekend. That has surpassed the March 2024 peak of 10 billion DOGE, CoinGlass data shows.
Open interest is the total number of unsettled derivative contracts. An increase in open interest may indicate new money entering the market, which could confirm current price trends and indicate upcoming volatility.
High open interest could suggest a strong continuation of the trend. CoinDesk market analyst Omkar Godbole expects prices to reach 50 cents in the coming weeks, based on price chart analysis.
“DOGE has climbed back above the closely monitored 50-day SMA, coinciding with a renewed rally to the 10-day SMA, indicating a bullish bias,” Godbole said. “Also, the discount on Coinbase compared to Binance has disappeared. This suggests a strong likelihood of prices breaking above the current three-day resistance of $0.40, potentially pushing towards 50 cents and higher.”
SMA, or simple moving average, is a measure of the average prices of any asset over a specific period that can be used to determine resistance and support levels.
“However, trading volumes on Coinbase remain low compared to levels seen during the November rally, warranting caution as long as the $0.40 resistance remains intact,” he added.
Some expect DOGE to reach a memetic level of $1 in 2025, a target nearly 50% higher than the token’s lifetime peak of 70 cents in 2021.
“Dogecoin will finally reach the dollar, and the world’s largest and oldest memecoin will reach a market cap of $100 billion,” Galaxy Digital head of research Alex Thorn wrote in a market predictions post for the anus. “However, Dogecoin’s market capitalization will be dwarfed by the Department of Government Efficiency, which will successfully identify and enact cuts in amounts exceeding Dogecoin’s maximum market capitalization in 2025.”
Much of DOGE’s recent rally has been fueled by bullish sentiment surrounding tech entrepreneur Elon Musk’s endorsement of the meme in the Trump administration.
Musk has launched plans to create a “Department of Government Efficiency,” abbreviated as DOGE, to make government spending more efficient.
This has fueled expectations among traders that there could be more talk about “DOGE” in mainstream media and retail trading circles, fueling attention and interest in dogecoin, as a CoinDesk analysis first noted at mid-October.
