In recent weeks, while AI agents and stock market parody tokens have captured the attention of many investors, the Dogecoin (DOGE) market has also demonstrated notable activity. There are ambitious predictions with some market players targeting a price level of $1 by 2025.
Recent data indicates an increase in interest from ‘whales’—wealthy and influential market participants—especially with a surge in transactions exceeding $100,000 over the past weekend. This uptick in whale activity could foreshadow a potential upward move in DOGE’s price.
Historically, January has been a strong month for Dogecoin, boasting an average return of 85%. Notably, in 2014 and 2021, the memecoin exhibited extraordinary performances, achieving returns of 250% and 700%, respectively. Even with a median performance of 5%, January stands as the second-best month for DOGE, surpassed only by October’s 8% average return.
Futures markets tracking DOGE have recently set a new high in open interest, with active contracts surging from 7.50 billion DOGE over the weekend to 10.35 billion DOGE. This achievement eclipsed the previous peak of 10 billion DOGE from March 2024, according to CoinGlass data.
Open interest represents the total number of unsettled derivative contracts. A rise in open interest typically signals new money entering the market, potentially confirming existing price trends and hinting at future volatility.
A high level of open interest is often indicative of a strong trend continuation. CoinDesk market analyst Omkar Godbole projects that DOGE prices could reach 50 cents in the near term, based on a price chart analysis.
“DOGE has successfully surged past the noteworthy 50-day simple moving average (SMA), alongside a renewed upswing in the 10-day SMA, signaling a bullish inclination,” said Godbole. He further noted that any discrepancies in pricing between Coinbase and Binance have started to align, enhancing the likelihood of a breakout through the current three-day resistance at $0.40, potentially steering towards 50 cents and beyond.
The simple moving average (SMA) is a critical indicator of an asset’s average price over a specified timeframe, helping traders identify support and resistance levels.
However, Godbole has pointed out that trading volumes on Coinbase are still relatively low compared to levels observed during the November rally, advising caution while the $0.40 resistance remains firm.
Market speculation continues around Dogecoin reaching a notable milestone of $1 in 2025, which would mark a significant increase of nearly 50% compared to its previous all-time high of 70 cents in 2021.
Noteworthy figures like Galaxy Digital’s head of research, Alex Thorn, have expressed optimism. “Dogecoin will finally hit $1, ultimately achieving a $100 billion market cap,” Thorn stated in a recent market predictions post. He also added, however, that this market cap might be overshadowed by the projected outcomes of a newly proposed Department of Government Efficiency, abbreviated as D.O.G.E.
A key driver in DOGE’s recent rally has been the enthusiastic endorsement from technology entrepreneur Elon Musk, especially during the previous administration. Musk’s intention to initiate a ‘Department of Government Efficiency’ aimed at improving government spending has further heightened expectations among traders, leading to increased chatter in mainstream media and possibly bolstering Dogecoin’s visibility.
As the market continues to evolve, investors will be keenly watching these developments, assessing the implications of whale activities, open interest fluctuations, and key endorsements contributing to Dogecoin’s trajectory.
