Dogecoin surged over 20% in the past week as whales accumulated more than $6 billion DOGE, driven by strong bullish technical indicators.
According to an X post by analyst Ali Martinez, whales reportedly bought over 1.08 billion DOGE on Jan. 3, worth around $413 million at that time.
The following day, another whale transferred 5 billion DOGE, valued at approximately $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 showcases an uptick in whale transactions of over one million dollars for Dogecoin over the past week.
Whale accumulation is typically viewed as a major bullish signal for an asset, as these deep-pocketed players are often more skilled at identifying market trends and making timely investments in assets that have the potential for long-term gains.
Further, the meme coin’s daily active addresses have also spiked in the past week, hinting at increased investor activity, which is generally considered an indicator of positive investor sentiment and robust network health.
Dogecoin also drew investor interest after a publicly listed Canadian investment firm, Spirit Blockchain Capital, announced plans to leverage its DOGE holdings to generate yield via a dedicated
Another factor driving DOGE’s recent momentum is speculation surrounding Elon Musk’s plans to launch a payments system on his X platform. As a long-time Dogecoin advocate, Musk has previously showcased his support by temporarily accepting DOGE for Tesla payments and frequently endorsing the meme coin on social media. Many now speculate that DOGE will be included as a payment option on ‘X Money’ alongside Bitcoin and possibly other cryptocurrencies.
Meanwhile, the open interest in DOGE has risen by over 50%, implying increased demand for the altcoin among derivatives traders. According to CoinGlass, DOGE’s OI grew from $2 billion on Dec. 1 to $2.97 billion on Dec. 6.
DOGE rally could continue
Technical indicators remain positive for DOGE, as on the 1-day chart, DOGE’s price remains above the 50-day and 200-day Exponential Moving Averages, suggesting that buyers are in control.
Further, the lines of the Moving Average Convergence Divergence and price oscillator have turned upwards, which typically indicates that DOGE could extend its rally in the coming weeks, possibly targeting its resistance level at $0.41, a break above which could push it toward its 2024 high of $0.47.
With January historically being Dogecoin’s most profitable month according to Coinglass, several market pundits, including Galaxy Digital’s head of research Alex Thorn, foresee DOGE potentially rallying to the highly-coveted $1 target by the end of 2025.
However, the rally might face some challenges. Dogecoin’s weighted social sentiment, per Santiment, is currently at -0.60, which means many investors are currently pessimistic about its potential to rise in the short term.
This negative sentiment could act as a short-term barrier, but it also presents an opportunity for contrarian traders to capitalize on the market’s cautious outlook.
At press time, Dogecoin (DOGE) was up 20% over the last 7 days, exchanging hands at $0.3825 with its market cap seated at $56.5 billion when writing and outperforming other leading meme coins like Shiba Inu (SHIB), Pepe (PEPE) and Bonk (BONK) which recorded gains of 10%, 12.3% and 5% respectively within the same period.
