AI Agents And stock 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 show renewed interest from whales, a colloquial term for wealthy and influential market participants, with an increase in transactions worth more than $100,000 over the weekend. Such activity could serve as a precursor to an increase.
January has consistently been the best performing month for memecoin with an average return of 85%, the data showsalthough he posted outlier performances of 250% and 700% in 2014 and 2021, respectively. Its median performance is 5%, the second highest after October’s 8%.
Futures markets tracking the token set a new record for open interest on Monday, with the number of active contracts increasing to 10.35 billion DOGE from 7.50 billion DOGE over the weekend. This surpassed a March 2024 peak of 10 billion DOGE, CoinGlass data watch.
Open interest is the total number of unsettled derivative contracts. A rise in open interest rates can signal new capital entering the market, potentially confirming current price trends and indicating future 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 graphical price analysis.
“DOGE rallied above the closely watched 50-day SMA, coinciding with a further rise in the 10-day SMA, signaling a bullish bias,” Godbole said. “Also, the discount on Coinbase versus Binance is gone. This suggests a high probability that prices will break the current three-day resistance at $0.40, potentially pushing towards 50 cents and beyond.
SMA, or simple moving average, is a measure of the average prices of any asset over a specified time period that can be used to determine resistance and support levels.
“However, trading volumes on Coinbase remain low compared to the levels seen during the November rally, warranting caution as long as the $0.40 resistance remains intact,” he added.
Some expect DOGE to reach the memetic level of $1 in 2025, a target nearly 50% higher than the token’s lifetime high of 70 cents in 2021.
“Dogecoin will finally hit $1, with the world’s largest and oldest memecoin reaching a market cap of $100 billion,” Alex Thorn, head of research at Galaxy Digital. wrote in an article on market forecasts for the year. “However, Dogecoin’s market cap will be overshadowed by the Department of Government Effectiveness, which will successfully identify and enact reductions in amounts exceeding Dogecoin’s peak market cap in 2025.”
Much of DOGE’s recent rally has been fueled by bullish sentiment around tech entrepreneur Elon Musk’s endorsement of the meme within the Trump administration.
Musk has floated plans for a “Department of Government Efficiency,” abbreviated DOGE, to make government spending more efficient.
This has fueled the expectation among traders that there may be more discussions about “DOGE” in mainstream media and retail trading circles, fueling attention and interest in dogecoin, as CoinDesk analysis was first noted in mid-October.