Dogecoin, the digital token originally designed as a lightweight version of cryptocurrencies, has seen increased trading activity over the past 48 hours, sparking growing speculation that the meme-inspired coin could see a jump substantial in the coming weeks.
Analysts say large holders, sometimes called “whales,” have collectively acquired around 90 million tokens iover a short period of time, coinciding with a modest rebound in the price of Dogecoin.
Source: X
According to on-chain data, the recent accumulation spike follows three days of price declines, which sent the coin to an intraday low near $0.308 on December 27. The price then recovered slightly, hovering near $0.316 at midday on Saturday before showing signs of a continued tug of war between buyers and sellers. Market participants believe that if the price falls below $0.30, it could trigger a larger pullback towards the $0.27 range, or even $0.23, where some traders expect strong interest purchase. Conversely, a decisive move beyond $0.38 could indicate that the current downtrend has run its course, leaving room for Dogecoin to test higher levels near $0.43.
Source: Brave new piece
Despite continued uncertainty, long-term holders appear hopeful that January could bring fresh momentum. Historical data from analytics platforms indicates that Dogecoin’s performance in January generated impressive returns at times.
One study suggests that the coin saw an average gain of 91.5% in January, based on over 10 years of data. This figure partly reflects a remarkable month in January 2021, when Dogecoin the price increased by more than 700%. Analysts nevertheless warn that the median performance for January is negative, emphasizing that past results do not guarantee future success.
The macro context weighs on sentiment
Dogecoin the fate may also depend on broader market forces. The digital asset rally driven by Bitcoin earlier in the year appears to have stalled in recent sessions, with most major cryptocurrencies seeing moderate trading volumes. Investors remain cautious amid growing concerns about monetary policy and signs that the U.S. Federal Reserve could adopt a more hawkish stance in 2025. Although the central bank is widely expected to leave interest rates unchanged at its late-January meeting, traders are not ruling out the possibility of further tightening if inflation proves tenacious.
Recent US jobless claims data came in lower than expected at 219,000, below the Dow Jones forecast of 225,000, sparking some optimism about the job market. However, continued complaints have reached their highest level since late 2021, suggesting some degree of underutilization that could further influence consumer behavior and, by extension, risk-sensitive assets like cryptocurrencies.
Altseason hopes and market outlook
Some observers view Ethereum’s historic performance in the first few months – often accompanied by rallies in other alternative cryptocurrencies, or “altcoins” – as a potential signal that Dogecoin could benefit from a broader rally. The data shows Ethereum has produced positive median returns from January to May in recent years. If this pattern repeats and triggers a new season, Dogecoin could see amplified gains thanks to its historically high volatility and strong community support.
However, the path ahead is far from certain. Critics claim that meme-inspired assets like Dogecoin could lack strong fundamentals and remain heavily influenced by social media sentiment. Supporters counter that constant development efforts and growing interest from high-profile influencers could strengthen the coin’s use cases over time.