Dogecoin surged over 20% in the past week as whales collected over $6 billion DOGE, driven by strong technical indicators.
According to X mail by analyst Ali Martinez, whales reportedly bought more than 1.08 billion DOGE on January 3, worth about $413 million at that time.
The next day, another whale moved 5 billion DOGEworth around $2 billion at the time, to an unknown address to become the fourth largest holder of the meme coin.
Data from the analytics platform Santiment shows an increase of more than a million dollars in whale transactions for Dogecoin over the past week.
A whale rally is generally seen as a key bullish signal for assets, as these deep-pocketed players are often more adept at identifying market trends and making timely investments in assets that have the potential for long-term gains. -time.
In addition, the daily active indices of the meme currency have also increased in the past week, indicating increased investor activity, which is generally considered a sign of positive sentiment. investors and strong network health.
Dogecoin also attracted investor interest after publicly listed Canadian investment firm, Spirit Blockchain Capital, name plans to leverage their DOGE holdings to generate returns through a dedicated company
Another factor driving DOGE's recent movement is speculation about Elon Musk's plans to launch a payment system on his X platform. As a long-time Dogecoin advocate, Musk has briefly shown his support accept DOGE for Tesla payments and often supports the meme coin on social media. Many are now speculating that DOGE will be included as a payment option on 'X Money' along with Bitcoin and possibly other cryptocurrencies.
At the same time, the open interest in DOGE has increased by more than 50%, meaning more demand for the altcoin among derivatives traders. according to to CoinGlass, OI DOGE grew from $2 billion on December 1st to $2.97 billion on December 6th.
The DOGE rally could continue
Technical indicators remain positive for DOGE, as on the 1-day chart, the price of DOGE remains above the 50-day and 200-day moving averages, suggesting that buyers are in control.
In addition, the lines of the Convergence Moving Average and Price Oscillator have turned up, which usually indicates that DOGE may extend its rally in the coming weeks, perhaps targeting its resistance level at $ 0.41, a break above that could push it towards the highest level of 2024. buy for 0.47 US dollars.
With January historically being Dogecoin's most profitable month according to Coinglass, several market experts, including Galaxy Digital's head of research, Alex Thorn, expect DOGE to rally to the $1 target on is highly respected by the end of 2025.
However, the rally may face some challenges. The social sentiment of Dogecoin's weight, per Santiment, is currently at -0.60, which means that many investors are currently pessimistic about its ability to rise in the short term.
This negative sentiment could be a short-term hindrance, but it also provides an opportunity for contrarian traders to take advantage of the market's cautious outlook.
At press time, Dogecoin (DOGE).SHIB), Pepe (PEIP) and Bonk (BONN) who recorded gains of 10%, 12.3% and 5% respectively within the same period.
