Dogecoin (DOGE-USD) remained in the shadows, but recent signs suggest he could be preparing for a comeback. Although the meme coin has taken a major hit this year, with the market cap down 28% since January, the change in sentiment could provide a great opportunity for contrarian investors.
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According to Santiment, a data analytics company, current crowd sentiment around Dogecoin is at its lowest level in a year. This, they say, has positive potential if the crypto upward market trends. The company emphasized that despite a quieter time for Dogecoin, “there are nice benefits to being a bold contrarian to DOGE” if the tide turns.
Whale activity signals potential price rise
One of the key indicators fueling optimism for Dogecoin is a increased activity of “whales” – large investors making transactions above $100,000. This increase in whale trading has sparked speculation that prices will rise in the short term. Although Dogecoin’s performance has been lackluster as of late, it has historically performed well in January, averaging an 85% return over the past few years. Santiment noted that technical indicators, like the 50-day moving average, also indicate a potential uptrend with a short-term target of 50 cents.
Cardano Leads Broader Market Recovery
While Dogecoin shows promise, Cardano’s ADA (ADA-USD) took the lead in the market-wide recovery. The altcoin increased by 5.5% in 24 hours. This market resurgence comes as traders turn their attention to AI Agent tokens, which are driving growth in crypto sectors. Solana (SOL-USD), Binance coin (BNB-USD), And Ethereum (ETH-USD) also saw modest gains, but Cardano’s strength stands out as the focal point of today’s rally.
At the time of writing, Dogecoin stands at $0.3234.
